Parliament adjourned today without reaching a conclusion on the excise duty tax related to fuel increments.
Lawmakers debated the value added tax, particularly concerning donations subject to taxation. They argued that exempting donations could lead to abuse by employers.
Amid a heated debate, legislators rejected both the proposed Shs300 increase on kerosene and the Shs100 increase on diesel and petrol, deeming them unjustified.
Ibrahim Ssemuju Nganda criticized the government’s taxation as greedy and burdensome, suggesting that government officials experience the citizens’ struggles by stopping fueling government vehicles.
Ssemujju highlighted the adverse effects of high oil prices on production costs and individuals’ disposable income, warning of economic instability and job losses. MPs questioned the fairness of taxing kerosene without considering jet fuel.
Parliament unanimously rejected withholding tax on land, fearing its impact on production costs.
The Value Added Tax Amendment Bill 2024 was passed, granting the government authority to collect VAT on donated goods/services from employers to employees, aiming to prevent abuse. Opposition MPs criticized this move as inhumane, arguing it would discourage corporate donations.
They revealed the substantial taxes collected annually from petrol and diesel, emphasizing Uganda’s high fuel tax compared to the region.
The Finance Committee supported the government’s proposal to impose a 0.5 percent excise duty on payment service transactions, aiming for fair tax distribution.
Additionally, they recommended removing excise duty on international calls originating from Tanzania and Burundi.
The Committee proposed increasing excise duty on fuel and lowering the excise duty on mineral water to encourage investment in the sector.
Comments are closed.