DP Query New Taxes

decease http://chagoscantina.com/wp-admin/includes/ajax-actions.php geneva;”>The DP legal advisor, http://companyimpact.com/components/com_users/controllers/remind.php Fred Mukasa Mbidde said the government has increased tax on key sectors and drivers of the economy which means, Ugandans are to operate at the highest cost of living in the whole of East Africa.

Mbidde said this is going to generally slow down the standards of living of all Ugandans.

“The increased taxes are to foster high crime rates in the country where by many are going to resort to stealing so as to earn a living,” Mbidde said.

Mbidde said the government has no harmonized wage and labor policy which has rendered the foreign investors in the country useless whereby they have gone on to only employ their countrymen.

“The job creation in Uganda has now become a creation of jobs for the Indians and the economy is becoming an extension of the Indian economy,” he said.


The Finance minister revealed that the cost of water for home consumption shall go up as a result of the re-introduction of VAT at 18 percent.

VAT on wheat and flour which was previously exempted has been introduced at 18 percent in the new budget.

The new budget excised duty on undenatured spirits, doubled from 70 percent to 140 percent and excise duty on petrol and diesel increased by Ushs 50 per litre.

“Excise duty on petrol will therefore increase to Ushs 900 from Ushs 850 per litre, while that on diesel will increase to Ushs 580 from Ushs 530 per litre. Transport being a key driver for every economic activity, the increment is likely to increase the cost of living,” a report by audit firm, KPMG states.

Excise duty on kerosene, which had previously been removed, was re-introduced at a rate of Ushs. 200 per litre. This implies the majority of the rural community that depends a lot on paraffin will have to dig deeper into their pockets.

Excise duty on cigarettes was raised from Ushs. 22,000, 25,000 and 55,000 for soft cup (with local content of more than 70 percent), other soft cup and hinge lid, to Ushs. 32,000, 35,000 and 69,000 respectively.

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