Cement prices are expected to shoot up again as government proposes new taxes
The government of Uganda has proposed to impose a 5% withholding tax on gains earned from the sale of land in cities and municipalities, sale of rental property and sale of shares in a private company.
The details are contained in clause 3 of the Income Tax Amendment Bill 2024 that was tabled before Parliament recently.
According to the Bill, taxpayers are required to remit this money to URA within 15 days after disposal of the assets or pay fines if the tax isn’t remitted within the stipulated period.
The Ministry of Finance is also seeking to impose an excise duty tax rate of Shs500 per 50Kgs of cement, adhesive, grout, white cement or lime, in a move that will likely increase prices of these products on the market.
The government has also proposed to impose a 10% or Shs75 per litre whichever is higher, on mineral water, bottled water and other water purposely for drinking.
The government has proposed to impose tax on fuel products like; Motor spirit (gasoline) with a rate of Shs1550 being proposed per litre, Gas oil (automotive, light, amber for high-speed engine) and a rate of Shs1230 per litre and Illuminating kerosene where Shs500 is proposed per litre.
The details are contained in the Excise Duty Amendment Bill 2024 that was tabled before Parliament by the Ministry of Finance.
The Ministry of Finance has also proposed to exempt payment of tax on electric cars manufactured in Uganda, electric vehicles’ charging equipment assembled in Uganda and the VAT exemption has also been proposed on items like; hoes, pesticides, fertilizers and seedlings, cooking stoves that use ethanol. The exemption is proposed to run up to 30th June 2028.
Parliament committees are set to scrutinise the Bills ahead of the passing of the National Budget for the Financial Year 2024/25.
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