Govt tightens rules for hotels’ tax exemptions
Mar 06, 2007
RULES for hotels that get tax exemptions ahead of the Commonwealth meeting have been tightened, finance state minister Fred Omach has said.
By Mary Karugaba
RULES for hotels that get tax exemptions ahead of the Commonwealth meeting have been tightened, finance state minister Fred Omach has said.
Omach told MPs on the budget committee that the move was aimed at limiting misuse of the incentives.
“With the coming of the Commonwealth Heads of Government Meeting (CHOGM), we have to control abuse of the tax exemptions. We want the hoteliers to abide by the rules so that we don’t lose out,†he told the legislators.
Omach said hoteliers should present certified bills of quantities and architectural designs before getting clearance from the Uganda Revenue Authority. (URA).
He said the hotels must be at the completion stage and have a letter from the Uganda Hotel Owners Association.
Omach said URA has also been instructed to supervise usage of the materials, audit and report any suspected abuse.
He said the hoteliers should present all import documents and match them with the bills of quantities.
He said as a policy, the Government had abolished discretionary tax exemptions. Omach said Parliament had legalised the discretionary tax exemptions.
“However, when the Government establishes a need to intervene to help a sector or a project, it pays taxes from its tax vote. The Government has paid taxes for hoteliers under that policy,†he explained.
Omach was reacting to the MPs’ concern over the abuse of hotel tax exemptions and measures the Government has put in place to handle the situation.
Henry Banyenzaki asked the minister why he had not reported to Parliament about the issue as required by law.
The committee chaired by William Oketcho said that according to the law, the minister is supposed to report to Parliament on a quarterly basis about the tax exemptions.
Oketcho said the minister had not reported to parliament for the last three financial years.
Omach apologised and promised to report to the legislators within two weeks.
RULES for hotels that get tax exemptions ahead of the Commonwealth meeting have been tightened, finance state minister Fred Omach has said.
Omach told MPs on the budget committee that the move was aimed at limiting misuse of the incentives.
“With the coming of the Commonwealth Heads of Government Meeting (CHOGM), we have to control abuse of the tax exemptions. We want the hoteliers to abide by the rules so that we don’t lose out,†he told the legislators.
Omach said hoteliers should present certified bills of quantities and architectural designs before getting clearance from the Uganda Revenue Authority. (URA).
He said the hotels must be at the completion stage and have a letter from the Uganda Hotel Owners Association.
Omach said URA has also been instructed to supervise usage of the materials, audit and report any suspected abuse.
He said the hoteliers should present all import documents and match them with the bills of quantities.
He said as a policy, the Government had abolished discretionary tax exemptions. Omach said Parliament had legalised the discretionary tax exemptions.
“However, when the Government establishes a need to intervene to help a sector or a project, it pays taxes from its tax vote. The Government has paid taxes for hoteliers under that policy,†he explained.
Omach was reacting to the MPs’ concern over the abuse of hotel tax exemptions and measures the Government has put in place to handle the situation.
Henry Banyenzaki asked the minister why he had not reported to Parliament about the issue as required by law.
The committee chaired by William Oketcho said that according to the law, the minister is supposed to report to Parliament on a quarterly basis about the tax exemptions.
Oketcho said the minister had not reported to parliament for the last three financial years.
Omach apologised and promised to report to the legislators within two weeks.