No new taxes in next financial year but stricter in enforcing old ones, says Minister Kasaija
The Finance Minister, Matia Kasaija has assured Ugandans that government will not introduce new taxes in the next financial year 2022/2023 but rather more measures to enforce old ones.
Reading the shs48 trillion budget to MPs on Tuesday, Kasaija said that in a bid to achieve next financial year’s budget priorities, government will see how to enhance domestic revenue mobilisation than introducing new taxes.
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“Madam Speaker, no new taxes will be introduced in financial year 2022/23. We will achieve revenue targets by improving the efficiency in tax collection and enhancing compliance to tax laws. The capacity of the Uganda Revenue Authority will be enhanced by recruiting and training staff, deploying appropriate equipment and ICT to enforce tax laws,”Kasaija said.
Taking cognizance of the current economic situation but also the effect of the Coronavirus pandemic, the finance minister said government will focus on getting tough on tax evaders to ensure it realizes its collections.
To this, government will further strengthen URA to enable collect enough taxes to fund the shs48 trillion budget.
“I wish to report that Parliament has made amendments to the various tax laws intended to simplify the laws, clarify previously ambiguous provisions and close loopholes that may lead to revenue leakage. 99. Madam Speaker, the amendments that have been made are in the Income Tax Act, Value Added Tax, the Stamp Duty Act and the Tax Procedures Act.”
He mentioned several amendments to tax laws that he said are intended to tighten the noose around tax evaders.
“The amendments under the Tax Procedures Code Act among others include the introduction of penalties for failure to adhere to Electronic Fiscal Receipting and Invoicing Solution and Digital Tax Stamps. This is intended to combat tax evasion, smuggling, and other vices.”
The minister said the budget is one that aims at stimulating economic recovery, enhance productivity and competitiveness of enterprises but also help in wealth creation and jobs for the ordinary Ugandans.
To this, Minister Kasaija said government will work on ways of reducing its expenditure in the next financial year in a bid to realize the budgetary goals.
