By Moses Kyeyune
Civil Society, tax experts and manufacturers have expressed mixed reactions on the new tax measures proposed by the government for the next financial year.
The different stakeholders were appearing before Parliament’s Committee on Finance on (Thursday) to give their take on the tax proposals introduced by the government.
One of the most contentious issues is the introduction of a 6 percent withholding tax on the acquisition of assets, as well as a new 0.5 percent tax on perpetual declaration of losses by large scale investments enjoying tax holidays.
The government also wants to slap rental tax on every (single) unit from real estate operators.
Whereas the civil society under the Tax Justice Alliance Uganda has welcomed the move, manufacturers from the Uganda Manufacturers association led by the executive Director Richard Mubiru have decried the move as unfair, and risks breeding non compliance due to huge tax burdens.
In an related development, PricewaterhouseCoopers Director, Francis Kamulegeya has asked lawmakers on the committee of Finance to expunge any provisions aimed at multiple taxation, fearing that they can harm the tax basket.
