The government of Uganda has in the Excise Duty Amendment Bill 2024 that was tabled before Parliament by the Ministry of Finance proposed a number of taxes.

Tax on disposal of non-business assets

The government has proposed to impose a 5% withholding tax on gains earned from the sale of land in cities & municipalities, the sale of rental property & sale of shares in a private company.

Taxpayers are required to remit this money to the Uganda Revenue Authority (URA) within 15 days after disposal of the assets or pay fines if the tax isn’t remitted within the stipulated period.

Tax on cement

The Ministry of Finance is also seeking to impose an excise duty tax rate of Shs500 per 50kgs of Cement, adhesives, grout, white cement, or lime, in a move that will likely increase the prices of these products on the market.

The government has also proposed to impose a 10% or Shs75 per litre whichever is higher, on mineral water, bottled water & other water purposely for drinking.

Tax on fuel products

The government has proposed to impose a tax on fuel products like motor spirit (gasoline) with a rate of Shs1550 being proposed per litre, gas oil (automotive, light, and amber for high-speed engines) & a rate of Shs1230 per litre, and illuminating kerosene where Shs500 is proposed per litre.

Exempting electric cars

The Ministry of Finance has also proposed to exempt payment of tax on electric cars manufactured in Uganda, and electric vehicles’ charging equipment assembled in Uganda.

Exemptions on farm inputs

Also, VAT exemption has been proposed on items like hoes, pesticides, fertilizers & seedlings, and cooking stoves that use ethanol. The exemption is proposed to run up to 30th June 2028.