Gov’t slaps fresh taxes on cement, fuel, cement, and alcohol

Ministry of Finance and Economic Planning and Development has released a new set of tax proposals for the 2024/25 financial year. 

The new taxes are captured in five amendment bills: Excise Duty Amendment Bill, 2024; Stamp Duty Amendment Bill, 2024; Value Added Tax, 2024; Income Tax Amendment Bill, 2024 and Tax Procedures Code Amendment Bill, 2024. 

Under the new proposals, government intends to impose Shs500 tax on each 50Kg of cement, adhesive, grout, white cement, or lime. 

The taxes on fuel includes Shs1,550 tax on every litre; Shs1,230 tax on each litre of paraffin, Shs1,550 per litre of paraffin. 

The proposals will effectively increase the standard of living if passed. 

State Minister of Finance in charge of Planning Amos Lugoolobi defended government position on the new taxes arguing that it will reduce Uganda’s reliance on loans for financing it’s development. 

“It is the natives of a country to build their economy. They’re not going to expect us to go to America and come here to finance development of this country,” he said before adding. 

“We are a country whose resource envelope depends on revenue and borrowed funds. We borrow because the revenue we use is not enough. But how long can you go on borrowing.”

The Ministry of Finance intends to table Shs58.6trillion budget for 2024/25. 

The figures suggest a 5.64trillion increase from 2023/24 budget.

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