Government proposes huge tax exemptions on investors

By Moses Kyeyune

Government has presented to Parliament a number of areas for tax exemptions ranging from “huge sum” investment to locally produced drugs and other raw materials for used in the domestic market.

Beneficiaries include investors whose minimum investment capital is Shs 37bn for foreigners and Shs 7.4bn for citizens.

This has been reduced from USD 15m and USD 5m for foreigners and citizens respectively.

The proposals contained in the new tax measures if adopted by Parliament will also exempt locally produced drugs exempted from Value Added tax and excise duty.

Taxes under excise duty on non-alcoholic drinks not including fruit and vegetable juice will be collapsed from the current 12 percent to 11 percent.

This implies, that soda and mineral water will have a reduced tax of shs 189 from shs 200 currently levied.