The Ministry of Finance and Economic Development has promised to increase the tax incentives and improve the tax policies that affect the investors in the country.
This move is meant to encourage more local investors to put money into the country and to transform the Ugandan economy.
The Ministry confirmed the development during a conference it organized, to discuss the current tax policies and tax incentives. The conference took place on September 4, 2024, at Hotel Africana, Kampala, with some of the invited stakeholders from Uganda Manufacturers Associations, Uganda Hotel Owners Associations, and officials from the Uganda Revenue Authority.
Ramathan Ngoobi, the Permanent Secretary and Secretary of Treasury in the Ministry of Finance, stated that the government is committed to solving complaints about the tax policy and increasing the tax incentives for the investors.
“The government is committed to creating a tax environment conducive for both the business owners and the government itself. We shall create a tax system that is simple to understand, equitable, and one that will support the development agenda of the government. Our tax policy is not just about tax collection; it’s about fairness, equity, and simplicity. We have introduced several measures aimed at ensuring that all sectors of the economy contribute fairly to national development,” he stated.
Deo Kayemba, the Executive Board Director of the Uganda Manufacturers Board (UMA), expressed the manufacturers concerns on the unfair incentive distribution and complicated tax regime and policy.
“When tax incentives are awarded to mostly international investors, it creates unfair competition between the local and foreign manufacturers. The tax policy is unpredictable and complicated in that it’s always changing and hard to understand, which leaves most manufacturers in collision with the tax collectors. This should be looked into,” he noted.
Robinah Nabbanja, the Prime Minister of Uganda and also the guest of honour, stated that President Museveni has directed the creation of new tax incentives and tax holidays for certain investors.
“We are going to connect all industries on the 0.5 cents USD per kilowatt of electricity to reduce production costs. Some of the income tax exemptions are incomes from agricultural activities and investments in certain sectors like Agro-economy and IT.
Tax holidays will be provided to investors who construct hotels, hospitals, industrial buildings, and others who will enjoy tax holidays of up to 10 years. A lot more tax incentives and tax holidays are being discussed,” she noted.
The government called for honest and candid feedback from investors in order for it to solve some of the problems faced by investors in the country.
