Finance Ministry measures
➡ Delay payment of Corporation tax for Corporations & SME’s
➡ Defer payment of PAYE by sectors affected
➡ Capitalization of UDC ( 100bn)
➡Capitalization of UDB ( 1 trillion)
➡Funds for Emyooga (Boda bodas,Saloon operators,Artists)
Kampala, Uganda | THE INDEPENDENT | The Ministry of Finance has proposed the Pay-As-You Earn (PAYE) is defered for sectors most affected, one of 11 measures to help businesses affected by the COVID-Pandemic. They have also proposed a waiver of interest on tax arrears
President Yoweri Museveni confirmed the measures today as he delivered the State of the Nation Address to Parliament from State House Entebbe.
He outlined 11 measures the Ministry of Finance will take to provide relief to individual and businesses to offset the effects of the COVID-19 pandemic.
Other measures include allowing corporations including small and medium sized enterprises (SMEs) to delay payment of corporation tax or presumptive tax for taxes due between April and June 2020 and for tourism, manufacturing, horticulture and floriculture to defer until September 2020.
President Yoweri Museveni also said the COVID-19 pandemic has helped the country realize its untapped potential, with its reputation set to grow.
“By correctly managing the pandemic, the reputation of Uganda will grow in the World. After the pandemic, people will flock here. The diaspora are now sure of a secure and respectable base, their homeland.,” Museveni said.
He singled out agriculture as one rock on which the country can prosper, saying despite the lock-down of most sectors, its farmers continued to earn the country millions of dollars.
“Our agriculture is, therefore, not only feeding us almost 100%, but also earning dollars for us of the magnitude of $2 billion annually,” he said in his 2020 State of The Nation Address he delivered today.
Measures from Ministry of Finance
- (i) Allow corporations including small and medium sized enterprises (SMEs) to delay payment of corporation tax or presumptive tax for taxes due between April and June 2020 and for tourism, manufacturing, horticulture and floriculture to defer until September 2020;
- (ii) Defer payment of Pay-As-You Earn (PAYE) tax by those sectors which are most affected until September 2020;
- (iii) Waiver of interest on tax arrears;
- (iv) Support to water and electricity utilities in order to ensure continued supply of these essential services to consumers during the period April to June 2020;
- (v) Expedite payment of outstanding VAT refunds;
- (vi) Payment of domestic arrears for goods and services supplied to Government by the private sector;
- (vii) For those unable to pay their loans, Government through the Bank of Uganda has already put in the gazette the measures to support businesses; including allowing extension of repayment periods, postponement of loan repayment for a limited period, relaxing the conditions for non-performing loans, reduction of reserve funds commercial banks are required to keep with Bank of Uganda and creating a special liquidity facility to rescue businesses that are not able to meet operational costs due to low demand or reduced production due to COVID-19;
- (viii) Capitalisation of Uganda Development Corporation (UDC) with Ug Shs. 100 billion to enable Government to invest in strategic areas;
- (ix) Boosting funding to Uganda Industrial Research Institute (UIRI) in FY 2020/21 to continue with innovation research and incubation of business start-ups.
- (x) Securing funding for the development of Kampala Industrial Business Park at Namanve and for power transmission and substations for Mbale, Kapeeka, Bweyogerere, Kasese, Soroti, Luzira, Jinja and Mbarara industrial parks; and
- (xi) Provision of additional UGX 300 billion immediately to boost agricultural production and productivity for seedlings, fertilizers, irrigation, storage facilities and value addition. The target crops are coffee, cotton, tea, palm oil and other oil seeds, cassava, maize, cocoa and dairy, beef, and fish production.
STATE OF THE NATION ADDRESS