Govt proposes new taxes

Affected. Users of social media platforms such as WhatsApp, Facebook, Twitter, Skype and Viber will be taxed PHOTO BY MICHAEL KAKUMIRIZI

What you need to know:

  • Tax bills that were tabled in Parliament last week indicate that the government is also proposing to tax SACCO’s, just a year after it had exempted them from paying taxes for the next 10 years.
  • The tax targets on social media users are mooted to raise between Shs400 billion and Shs1.4 trillion.
  • Also to be exempted from tax is the income of an operator in an industrial park or free zone or other business outside the industrial park or free zone whose investment capital is at least $30m (Shs110.7b) in the case of a foreigner or $10m (Shs36.9b) in the case of a Ugandan citizen for five years from the date of commencement of business..

Government has proposed to increase taxes on wines, spirits, beers, airtime, SACCOs and money transfers in a bid to widen the revenue envelope and fix the ailing economy.
Tax bills that were tabled in Parliament last week indicate that the government is also proposing to tax SACCO’s, just a year after it had exempted them from paying taxes for the next 10 years.

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