Parliament passes new tax proposals on essential services
The members of parliament unanimously agreed to delete the proposed tax on kerosene of 300 shillings per litter.
Kampala: Parliament has approved new tax proposals on essential services and items, including fuel, bottled drinking water, and digital money transfers.
The Excise Duty Amendment Bill 2024 imposes more than 100 shillings on every liter of petrol and diesel, 10% on drinking water, and 0.5% on the value of digital money transactions.
The tense disagreement among the members of parliament was about fuel and digital money transfers, where a section of legislators proposed that fuel taxes be slapped on jet fuel because the rich who use those services won’t feel the pinch.
The other point of discontent has been the digital money transfer, and some MPs have noted that this tax will frustrate foreign cash deposits and lead to black currency market tax avoidance.
The members of parliament unanimously agreed to delete the proposed tax on kerosene of 300 shillings per litter.
The chairperson of the finance committee, Amos Kankunda, has told parliament that the tax on kerosene should be limited since it is mostly used by low-income earners.
Kira Municipality MP Ibrahim Ssemujju Nganda and Karim Masaba of Mbale Industrial Division wanted the tax on mineral water and on petroleum also deleted, but parliament refused.
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