Parliament has passed a 12% tax on internet data.
The tax measure is contained in the Excise duty amendment bill 2021 that among other things has introduced a 100 shillings’ tax on every liter of fuel.
The new tax proposals also repealed the daily 200 shillings Over the Top (OTT).
However the 12 percent tax will be exempted when purchasing data for medical and education services.
Kampala Central MP Muhammad Nsereko rejected the internet tax saying it does not help for a country whose internet costs are already high.
He says that Government cannot tell when one is buying data for leisure or educational services.
Jonathan Odur the Erute South MP also asked Government to revise the tax on the internet. He said that it will hurt the economy which is trying to go digital.
Minister of State for Planning David Bahati however countered this by saying that MPs have been asking them to stop borrowing, and that is why they have decided to bring in new taxes.
A tax of 30% or 230 shillings per liter has also been introduced on locally produced other than non-alcoholic beverage not including fruit or vegetable juice, made out of fermented sugary tea solution with a combination of yeast and bacteria.
On plastic Packaging a tax of 5% or 150 dollars per ton has been imposed while 5% or 100 dollars per ton for Plastic Granules has been imposed. The MPs rejected the 100 shillings’ tax on wheat grain per kilogram.
Parliament also passed the Stamp Duty Amendment Bill 2021 which exempts a manufacturer whose investment capital is at least USD 50 Million or, in the case of an any other manufacturer, that makes an additional investment equivalent to USD 50 Million from bearing the stamp duty on all transfers.
The house also passed the Tax Procedures Code(Amendment)bill, 2021 which requires a license to be given to only a person with a tax identification number.
It also imposes a penalty of 10 million shillings or imprisonment of five years or both for a taxpayer who attempts to acquire or sell the Tax Stamps without goods and also if the taxpayer acquires tax stamps with the authority of the Commissioner.
