Thursday, October 3, 2024
Home > News > Tough Times As Gov’t Proposes Higher Taxes On Fuel Products
News

Tough Times As Gov’t Proposes Higher Taxes On Fuel Products

 Henry Musasizi, Minister of State for FinanceGovernment through the Ministry of Finance, Planning and Economic Development has proposed to impose tax on fuel products like Motor spirit (gasoline) Shs1550 per litre, Gas oil (automotive, light, amber for high speed engine) Shs1230 per litre and Illuminating kerosene Shs500 per litre.

This move is likely drive the cost of fuel in Uganda higher than the current rate.

The current excise duty tax on Motor spirit/gasoline) is Shs1450 per litre and Gas Oil is Shs1130. This means the tax for gasoline and gas oil have all been increased by Shs100.

The details are contained in the Excise Duty Amendment Bill 2024 that was among the tax bills including; Stamp Duty Amendment Bill 2024, Income Tax Amendment Bill 2024, Value Added Tax Amendment Bill 2024, and Tax Procedures Code Amendment Bill 2024 that were tabled before Parliament by Henry Musasizi, Minister of State for Finance.

Government is also proposing 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 of a private company in the Income Tax Amendment Bill 2024, and the taxpayer are required to remit this money to URA within 15 days after disposal of the assets or pay fines for failure to remit the tax within the stipulated period.

This isn’t the first time Government has proposed to impose a withholding tax on land transactions, but in all the past attempts, the proposal has been rejected by MPs on grounds that such a tax would drive prices of land higher than the current market rate.

If the proposal by the Ministry of Finance to impose an excise duty tax rate of Shs500 per 50Kgs of Cement, adhesives, grout, white cement or lime, is approved by Parliament, starting from 1st July 2024, Ugandans will pay higher prices for these construction products.

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. This similar tax was fronted last year where Government argued that the tax on mineral water is intended to generate revenue that could be used to address water shortage in water scarce areas across the country.

The Ministry of Finance has also proposed to exempt payment of tax on the supply & manufacture of electric cars manufactured in Uganda, electric vehicle charging equipment assembled in Uganda. Tax exemption has also been proposed on items like; hoes, pesticides, fertilizers and seedlings, cooking stoves that use ethanol up to 30th June 2028.

 

Leave a Reply

Your email address will not be published. Required fields are marked *