MPs, govt clash on tax
MPs yesterday failed to agree with the Government on whether to impose tax on galvanised iron sheets or not.
By John Odyek
and Joyce Namutebi
MPs yesterday failed to agree with the Government on whether to impose tax on galvanised iron sheets or not.
The MPs were scrutinising the report of the budget committee on the Finance Bill, 2004.
Some MPs wanted Clause 11 of the Bill to be deleted so that galvanised iron sheets be taxed, a move that finance state minister Mwesigwa Rukutana opposed.
The clause intends to provide a new code for the iron sheets as a raw material that does not attract tax.
The MPs argued that under the Finance Act, 2003, the item attracted a tax but the finance ministry had refused to implement it.
Rukutana said the Government was determined not to impose tax on this item because it was a raw material.
He said after the Bill had been assented to including galvanised iron sheets as taxable, the Government found it inappropriate and made a statutory instrument, which empowered him to waive the tax.
The committee said unfair play would discourage investors and retard economic development.
and Joyce Namutebi
MPs yesterday failed to agree with the Government on whether to impose tax on galvanised iron sheets or not.
The MPs were scrutinising the report of the budget committee on the Finance Bill, 2004.
Some MPs wanted Clause 11 of the Bill to be deleted so that galvanised iron sheets be taxed, a move that finance state minister Mwesigwa Rukutana opposed.
The clause intends to provide a new code for the iron sheets as a raw material that does not attract tax.
The MPs argued that under the Finance Act, 2003, the item attracted a tax but the finance ministry had refused to implement it.
Rukutana said the Government was determined not to impose tax on this item because it was a raw material.
He said after the Bill had been assented to including galvanised iron sheets as taxable, the Government found it inappropriate and made a statutory instrument, which empowered him to waive the tax.
The committee said unfair play would discourage investors and retard economic development.