Wealthy individuals in Uganda may soon be compelled to pay more taxes once government agrees to the High Net worth Individual Taxation (HNWIs) proposal.
It is believed that through the High Net Worth Individual Taxation proposal, Wealthy individuals will pay more taxes so that income is evenly distributed. It also expected that more revenue will be mobilised from the tax payers.
Godwin Denis Tumusiime, a Policy Analyst with Uganda Revenue Authority, says the High Net Worth Individual Taxation proposal follows an observation that taxation mainly targets the poor.
He says Uganda Revenue Authority has already established a desk for High Net Worth Individual Taxation.
Other areas being targeted for High Net Worth Individual Taxation include, individuals that hold majority shareholding in companies whose earnings have in the past not been taxed, farmers with high value commercial forests, animal ranches and plantations.
The public’s known rich persons are also being targeted for this tax. Importers and exporters of goods and services worth Shillings 500 million per annum will also be eligible for the High Net Worth Individual taxation.
Shareholders in companies with annual turnover of Shillings 50 billion will also face extra tax.