The Independent Uganda: You get the Truth we Pay the Price
On taxing cooking oil, the group said: “There should also be categorisation that puts in place tax on imported oil and on raw materials imported for manufacturing the product…this measure will encourage more local production of cooking oil rather than relying on imports.”
Meanwhile, Niwamanya (KPMG) proposes that government should focus on ensuring that it creates a conducive environment for doing business and then put in place measures to get the people in the informal sector to formalise and start contributing to tax revenue.
He also proposes that there should be the use of electronic fiscal devices to monitor sales to assist in widening the tax base without necessarily introducing new taxes.
He said the URA Commissioner General needs to be supported to designate businesses that must issue e-receipts or use receipting systems that are connected to the URA online system.
“This move will help in curbing the under declaration of revenue by informal sector players that have huge cash transactions on a daily basis,” he said adding, “much efforts should also be put towards the non-compliant tax payers other than focusing on those that are already compliant.
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Proposed list of supplies exempted from VAT
- The supply of Bibles and Qu’rans
- The supply of services to conduct a feasibility study, design and construction to a developer of an industrial park or free zone whose investment is at least two hundred million United States Dollars
- The supply of earth moving equipment and machinery for development of an industrial park or free zone to a developer of an industrial park or free zone whose investment is at least two hundred million United States Dollars
- The supply of construction materials for development of an industrial park or free zones
- The supply of services to conduct a feasibility study and design; the supply of locally produced materials for the construction of a factory or a warehouse and the supply of locally produced raw materials and inputs
- Supplies for agro processing, food processing, medical appliances, building materials, light industry, automobile manufacturing and assembly, household appliances, furniture, logistics and warehousing, information technology or commercial farming
