As part of URA’s 2017/2018 Financial Year Revenue Collection measures, the tax body engaged with stakeholders across the country in trying to help taxpayers understand the budget. The move according to the URA Commissioner General, Doris Akol, was purposely aimed at improving revenue collection but also the management of rental income tax. The tax man warned landlords against under declaration of rental income or else risk paying rental rates prescribed by the government. “This is to encourage our landlords to declare their rental income accurately and if they do not, then we will devolve to the estimated assessments for rental incomes using the prescribed rates.” Said, URA Commissioner General.
URA however advised tenants to ensure they were given receipts with the actual amount. URA’s Commissioner Customs, Dickson Kateshumbwa also shared the new amendments in the Domestic Tax Regime that were proposed in the National Budget. Kateshumbwa explained the ten-year Tax exemption on SACCOS, 15% Taxes on Gambling, Tax Exemption on Donor Funded Projects, 18% VAT on imported wheat grain and 25% Tax Duty on imported gas cylinders among others. “Well, as a country, if we are going to encourage the production and growing of these products. We must have a way that encourages consumption of locally grown products. There has been a lot of under declaration of these items. So that is why we’re having a fixed duty rate and a specific rate whichever is higher.” Said, Customs Commissioner.
Finance Minister, Matia Kasaija instructed URA to improve her tax collections in order to reduce the government debt burden. “I want her to collect 30 Trillion. now if I have the 30 Trillion, I can finance your budget up to 90% without having to go to borrow. Am told people are worried saying that the debt you have is too big and you may not be able to pay it back.” Said, Finance Minister. Kasaija also defended the ten-year Tax Exemption on SACCOS saying, it is aimed at improving their performance as well as helping them to grow their finance base. We often complain about bad roads, drug stock out or even delayed salaries but the question is; are we paying our taxes promptly? This 30 Trillion target isn’t just for URA but also Ugandans.
