By ESTHER OLUKA & Arthur Arnold Wadero
Any person selling land, house or any piece of property or equipment purchased exclusively or primarily for business use will be required to pay tax if Parliament approves the proposed tax measures.
The new tax proposals touching land transactions, rental income, tax holidays to selected beneficiaries and related matters, are contained in the draft Income Tax (Amendment), Bill, 2022 to Parliament.
The State Minister (General Duties, Finance), Mr Henry Musasizi, tabled nine tax bills on March 31 including the new Income Tax (Amendments) Bill, 2022.
When contacted last evening to explain the proposed government tax measures for the 2022/2023 Financial Year including the plan to tax land as a business asset, Mr Musasizi said: “I have no idea”.
Land, according to Mr Nathan Nandala Mafabi, a professional accountant, is classified as a long-term asset on a business’s balance sheet, because it typically isn’t expected to be converted to cash within the span of a year.
“We don’t want to burden people who are already struggling with high commodity prices. We will scrutinize these tax proposals because not every item that is purchased for use in a business operation can properly be identified as a business asset,” Mr Mafabi explained.