Parliament has passed the Tax procedures code amendment Bill 2018. The Bill provides for the manner in which tax returns are to be furnished to the Revenue Authority.
It also requires licensed persons in the business of casinos, lotteries and gaming to furnish weekly and monthly returns in order to manage risk as payouts are done on a daily basis.
It further states that taxes owed by government to Uganda Revenue Authority will be waved as at 30th June 20l8 except withholding tax. Government makes commitments to pay taxes on behalf of some taxpayers in strategic sectors through agreements, memorandum of understanding or commitment letters.
However, Members of parliament were furious over the report that some small business entities are charged unfairly compared to investors who are given tax holidays at the expense of small business holders.
The chairperson of the Finance Committee, Henry Musasizi, told parliament that the Uganda Revenue Authority is supposed to carry out an assessment on the returns and confirm the tax to be paid within a year but it has been a practice of URA not to conduct an assessment within a year, which has affected tax payers as URA conducts the assessment after several years of filing returns but imposes interest on the tax payer from the time of filling returns.
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However, Members of parliament were furious over the report that some small business entities are charged unfairly compared to investors who are given tax holidays at the expense of small business holders.
Bahati argued that all Value Added Tax payers should acquire tax machines and cash registers. Government should not pay taxes on behalf of persons who have not earned incomes.
The chairperson of the finance committee Henry Musasizi said that all matters concerning tax returns be filed every financial year but not all business entities most especially small businesses should be charged unfairly.
MPS Merdad Ssegoona Patrick Nsamba,Wilfred Niwagaba Amos Lugolobi .Col .Fred Mwesigye and James kakooza demand that a company that has made a profit should pay it’s taxes. Any agreements that government has made to exempt companies making profits from paying taxes should be declared nullified.
They said that there should be proper criteria of handling tax exemption which are mostly benefited by foreigners.
Kabula county Mp James kakoza James said that profit making companies that owe the state a tax ,must be pay . He added that the excuse that charging them a tax will chase investors is a lie and must be rejected.
The minister of state for planning David Bahati argued that all Value Added Tax payers should acquire tax machines and cash registers. Government should not pay taxes on behalf of persons who have not earned incomes.
The Ministry of finance has been exempting entities from paying taxes without Parliament approval.