President Museveni Returns Tax Amendment Bill to Parliament for Reconsideration

President Yoweri Kaguta Museveni has returned the Income Tax (Amendment) Bill, 2023 and Tax Procedure Code (Amendment) Bill, 2023 for reconsideration.

Museveni refused to sign into law the Income Tax Amendment Bill 2023, until Parliament reviews the proposal to impose a 5% Withholding Tax on digital companies making revenue in Uganda, stating that argument fronted by the Opposition that the digital companies would push the tax unto the residents in Uganda, is false as the tax will be borne by the digital companies.

“The measure was meant to cater for taxation of digital economies such as; Twitter, Amazon, Netflix etc the clause related to non-residents and non-residents in Uganda says it doesn’t relate to residents in Uganda as it was mistakenly stated in the minority report. It should be reinstated,” wrote president Museveni in his 26th June 2023 letter to Speaker Among.

The Ministry of Finance had in May 2023 backed off the attempt to impose a 5% Withholding tax on gross revenue digital companies were making in Uganda, asking for more time to conduct a study on its impact on Uganda’s economy.

According to the President’s letter as read out by Speaker Anitah Among, “there are some clauses that need to be reviewed.”

The Speaker  referred the two Bills to the Sectoral Committee on Finance, Planning and Economic Development for urgent review.