Ugandans should brace for the worst in terms of increased prices after government proposed new taxes on cement and fuel in the new budget.
According to the Excise Duty Amendment Bill, 2024, that the State Minister for Finance, Henry Musasizi presented to parliament, government seeks to increase a shs100 tax on every litre of petrol from the current shs1450 to shs1550.
Government also seeks to increase by the same amount the tax on a litre of diesel to see the tax move from shs1130 to shs1230 while tax on kerosene will increase from shs200 to shs500.
However, government proposes to have tax exemptions on electric cars manufactured in Uganda, electric vehicle charging equipment assembled in Uganda, hoes, pesticides, fertilisers, seedlings and cooking stoves that use ethanol.
In the same vein, government has sought to impose an excise duty rate of shs500 per 50-kilogram bag of cement, grout and white cement.
Government also seeks to impose a 10% or shs75 per litre on mineral water, bottled water or any other water purposely for drinking.
Sale of land
In the Tax Amendment Bill 2024, government has also proposed to impose a 5% withholding tax on proceeds earned from the sale of land in cities and municipalities, sale of rental property and sale of shares in private companies.
To this, taxpayers are required to remit the money to URA within 15 days after the disposal of the assets or pay fines if the tax is not remitted within the stipulated time frame.
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