The State Minister for Finance Henry Musasizi has presented eight new tax bills to Parliament's Finance Committee, aiming to raise Shs1.7 trillion in revenue.
"The new tax proposals are aimed at raising the tax to GDP ratio to 20% in the medium term and 25% in the long term," Musasizi said.
Key proposals include:
- 6% withholding tax on artists and promoters
- Gaming tax hike from 20% to 30%
- Vehicle transfer charges up from Shs200,000 to Shs500,000
- 10% withholding tax on commissions paid to data and voice bundle distribution agencies
- VAT threshold increase from Shs150m to Shs250m to support small businesses
The committee has mixed reactions, seeking more time to study the proposals. Musasizi cited benefits like stabilizing power costs and growing small businesses.
