Fees for customized number plates up by 400%

Government has hiked registration fees for customized number plates from sh5, 000,000 to sh20, 000,000 effective July 1, 2016.

The finance minister designate Matia Kasaija also announced an increment in excise duty on diesel and petrol by shs100, soft cup cigarettes to sh50, 000 per 1000 sticks and Hinge Lid cigarettes to sh80, 000 per 1000 sticks.

Other items with hiked taxes include: sweets and confectionaries to 20%, 1% to 1.5% in stamp duty on transfer of property.

The minister also announced measures approved by Parliament to facilitate investment in emerging industries such as petroleum, mining and construction sectors. 

"Taxpayers, who merge or acquire loss-making businesses and continue to operate this same business after this transaction, will be allowed tax relief for such losses in order to promote Uganda's investment climate and facilitate mergers and acquisitions," the minister said.

VAT relief will be granted in respect of supplies procured from the domestic market for aid-funded projects, in order to cure the imbalance suffered by domestic suppliers and producers.

Producers of solar, wind and geothermal energy will be allowed relief on VAT incurred on their business inputs, in order to reduce the cost of production of alternative sources of energy.

VAT imposed on imported services used by Business Process Outsourcing (BPO) companies will be refunded at the time of export or offset if the services are consumed in Uganda, the minister said.