Presentation to Parliament Sectoral Committee on Finance, Planning and Economic Development

Nelly Busingye Mugisha from Tax Justice Alliance presenting the CSO position on Tax Revenue Measures for FY 2018/19. On the right is the committee chairperson Hon Henry Musasizi.

At the 8^th sitting of the 3^rd meeting of the 2^nd Session on the 10^th Parliament of Uganda held on the 3^rd April 2018, the Minister of Finance, Planning and Economic Development tabled the following Tax and Revenue Bills:

1. The Income Tax (Amendment) Bill, 2018
2. The Lotteries and Gaming (Amendment) Bill, 2018
3. The Traffic and Road Safety Act (Amendment) Bill, 2018
4. The Excise Duty (Amendment) Bill, 2018
5. The Value Added Tax, (Amendment) Bill, 2018
6. The Tax procedure Code (Amendment) Bill, 2018
7. The Tax Appeals Tribunal (Amendment) Bill, 2018
8. The Stamp Duty (Amendment) Bill, 2018

As concerned citizens, today Tuesday 24th April 2018, the Civil Society Organizations under the Tax Justice Alliance, presented their position on Tax Revenue Measures for FY2018/19 to the Parliament Sectrol Committee on Finance, Planning and Economic Development.

The Alliance welcomes the following tax proposals to improve revenue collection and facilitate investment in the FY 2018/19 and beyond including:

1. The proposal to CAP the period over which a tax payer can carry forward losses. This will curb perpetual declaration of losses.
2. The proposal to allow a deduction for Interest on a mortgage from a financial institution as expenditure incurred by an individual to acquire or construct premises that generate rental income; this will enhance proper accounting principles of rental businesses and therefore may improve tax compliance of the said rental businesses.
3. The Introduction of VAT on passenger automobile, their repair and maintenance and entertainment for contractors in mining and petroleum operations and aid funded projects will increase the tax revenue and is therefore commendable.
4. The insertion of the fourth schedule in the Traffic and Road Safety Act 1998 which seeks to increase the fees for registration of cars besides station wagons by 300,000. This will contribute to an increase in the collection of Non-Tax Revenues

On the right; Hon David Bahati the State Minister Ministry of Finance, Planning & Economic Development during the session

However there are a number of concerns that the CSO members wish to be considered before passing the Bills into Law.

Hon Henry Musasizi the Chairperson of the Parliament Sectrol Committee on Finance, Planning and Economic development wondered why the Ministry of Finance was proposing to re-introduce tax on SACCO’s which had been given a 10 year exemption just last year. In his response, Hon David Bahati explained that government wishes parliament to reconsider that decision since some SACCOs make quite a considerable amount of profit and therefore need to pay tax on it.

Hon Nandala Mafabi a committee member raised the issue of double taxation on the proposal to levy a Shs 200 per user per day of access on over the top services. This he said was unjust since the consumer.

CIVIL SOCIETY POSITION ON TAX REVENUE MEASURES FOR FY 2018/19