URA scraps tax on hotel items

Jul 15, 2005

THE Government has scraped tax on some hotel items in response to a request from hoteliers a few years ago, Peter Malinga, the commissioner for customs and excise duty at Uganda Revenue Authority (URA), has said.

By Charles Bwogi

THE Government has scraped tax on some hotel items in response to a request from hoteliers a few years ago, Peter Malinga, the commissioner for customs and excise duty at Uganda Revenue Authority (URA), has said.

“The exercise came into force on July 1. To qualify for exemption, the hotel or guest house must have at least 25 rooms and more,” Malinga said.

He said this at a workshop for Uganda Hotel Owners Association (UHOA) on Thursday.

The tax-free items are televisions, curtains, utensils, furniture and washing machines.

Malinga said items, which can be locally manufactured like cement and iron bars, used in construction of hotels, are not exempted.

The chairman of UHOA, Bulaimu Muwanga Kibirige (BMK), said, “To avoid misusing the opportunity, the beneficiaries must first clear with the association before URA clears any item.”

Malinga said hotel owners should engrave the exempted items to ensure that the tax relief is not misused for personal gains.

UHOA is made up of 60 members and is supposed to lobby for better conditions.

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