URA Unveils 2017-2018 Budget

By Rose Nyakaisiki, Kivumbi Earnest Benjamin & Briton Kiwanuka

The Minister of Finance, Planning and Economic Development Hon. Matia Kasaija has spoken to Ugandans about the implications of the national budget and the new tax policies. This was during the URA Annual Break fast yesterday at Hotel Africana.

URA is pushing for initiatives that will engender better compliance from tax payers as it tries to achieve its set target of Shs15 trillion for the coming financial year.

Uganda Revenue Authority is also in a combative mood, warning importers that they risk higher fines for concealment and under-declaration of goods.

What’s Changed ?

Bodies that have been enacted by Parliament to regulate conduct of professionals, are exempt from Income Tax
The change in rental tax is to be effected in collaboration with the Government Valuer to curb under declaration by Landlords.
Most SACCOs are struggling and it is one of the reasons they are exempted from taxes this financial year.
The supply of wheat grain is standard rated to promote local wheat. Locally produced wheat is exempt.
Commissioner General: 15% re-instated on winning lotteries & betting is in addition to the 20% tax imposed by Lotteries Act on betting houses
VAT exemption on menstrual caps to promote Girl Education.
URA is doubling its fine for under-declaration and concealment from $10,000 (Shs36M) to $20,000 (Shs72M), hoping it that this will deal with the increasing instances of the practice, which URA has partly blamed for its revenue shortfall of Shs240.2B this year.

URA officials unveiled the new fines as part of a series of new proposals during the URA Annual Budget Breakfast meeting held in Kampala on Monday.

The tax body is pushing for initiatives that will engender better compliance from tax payers as it tries to achieve its set target of Shs15 trillion for the coming financial year.