The Uganda Revenue Authority- URA has commissioned a study to gauge
the impact of tax exemptions on the economy. The study will influence policy
changes in the next financial year.
Government provides tax exemptions especially in areas of Agriculture,
manufacturing, construction, information and communication technology ,
warehousing and logistics among others, in order to attract foreign
However there are concerns of reductions in tax revenue collection despite the
sustained growth of the economy. In 2015, the URA reported that it had foregone
total revenue of 1.6 Trillion Shillings as a result of tax exemptions in the
2013/2014 financial year.
Milly Isingoma Nalukwago, the Assistant Commissioner Research, Planning and
Development URA, the study will seek to assess the impact of tax exemption
which will inform policy formulation.
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According to Nalukwago, they are developing the concept on the
methodology of the study and sampling the companies.
Thomas Tayebwa, the MP Ruhinda North County says that several Ugandans are
facing challenges and yet foreign investors are benefiting from the
exemptions. He cites foreign rice importers who were exempted at the expense of
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Three companies; Gotovate Uganda Limited, Williex commodities and
Akhom were exempted from taxes to import rice during this period of COVID-19.
On Wednesday, Parliament approved the tax exemption on COVID-19 medical
supplies and materials and inputs used in the manufacture of equipment for the
prevention, protection and treatment of COVID-19.