URA demands sh250m tax from Ezra
UGANDA Revenue Authority (URA) has demanded taxes on Michael Ezra’s $250,000 (about sh450m) watch. Ezra was announced in Dubai on Sunday as the winner at an international auction to purchase a Mont Blanc watch.
By Joseph Kabuleta
UGANDA Revenue Authority (URA) has demanded taxes on Michael Ezra’s $250,000 (about sh450m) watch.
Ezra was announced in Dubai on Sunday as the winner at an international auction to purchase a Mont Blanc watch, the only one of its kind in the world.
According to URA, Ezra must pay import duty of 25%, VAT of 18% and withholding tax of 6%, which adds up to about sh250m.
Patrick Mukiibi, URA’s assistant commissioner for public cooperate affairs, said yesterday, “I have spoken to him and informed him that he is obliged to make good on his account.â€
The threshold for the watch auction, whose proceeds went to charity, was $65,000 (sh117m), which, according to Mont Blanc chief Frank Passmann, is the retail price of the watch. But Mukiibi said the fact that Ezra’s money went to charity does not affect the taxation rates.
“The GATT valuation dictates that we use the transaction value, which we know to be $250,000,†Mukiibi said.
“The charity bit is a different thing because that money was left outside the country. As far as we’re concerned, he bought a commodity and brought it into the country and it ought to be taxed.â€
Ezra was not available for comment.
UGANDA Revenue Authority (URA) has demanded taxes on Michael Ezra’s $250,000 (about sh450m) watch.
Ezra was announced in Dubai on Sunday as the winner at an international auction to purchase a Mont Blanc watch, the only one of its kind in the world.
According to URA, Ezra must pay import duty of 25%, VAT of 18% and withholding tax of 6%, which adds up to about sh250m.
Patrick Mukiibi, URA’s assistant commissioner for public cooperate affairs, said yesterday, “I have spoken to him and informed him that he is obliged to make good on his account.â€
The threshold for the watch auction, whose proceeds went to charity, was $65,000 (sh117m), which, according to Mont Blanc chief Frank Passmann, is the retail price of the watch. But Mukiibi said the fact that Ezra’s money went to charity does not affect the taxation rates.
“The GATT valuation dictates that we use the transaction value, which we know to be $250,000,†Mukiibi said.
“The charity bit is a different thing because that money was left outside the country. As far as we’re concerned, he bought a commodity and brought it into the country and it ought to be taxed.â€
Ezra was not available for comment.