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    UGANDA Excise Duty (Amendment) Bill 2018

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    This document is a bill that proposes amendments to Uganda's Excise Duty Act of 2014. The bill aims to: 1) raise the point of accounting for excise duty on telecommunication services; 2) introduce interest for unpaid excise duty; 3) enhance excise duty on certain goods; 4) amend excise duty on telecom services; and 5) introduce excise duty on cooking oil and motorcycles at first registration. The bill contains details on the proposed amendments including changes to definitions, rates of duty, and penalties.

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    UGANDA Excise Duty (Amendment) Bill 2018

    Uploaded by

    jadwongscribd
    268 views10 pages
    This document is a bill that proposes amendments to Uganda's Excise Duty Act of 2014. The bill aims to: 1) raise the point of accounting for excise duty on telecommunication services; 2) introduce interest for unpaid excise duty; 3) enhance excise duty on certain goods; 4) amend excise duty on telecom services; and 5) introduce excise duty on cooking oil and motorcycles at first registration. The bill contains details on the proposed amendments including changes to definitions, rates of duty, and penalties.

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    UGANDA Excise duty (Amendment) Bill 2018

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    UGANDA Excise duty (Amendment) Bill 2018

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    This document is a bill that proposes amendments to Uganda's Excise Duty Act of 2014. The bill aims to: 1) raise the point of accounting for excise duty on telecommunication services; 2) introduce interest for unpaid excise duty; 3) enhance excise duty on certain goods; 4) amend excise duty on telecom services; and 5) introduce excise duty on cooking oil and motorcycles at first registration. The bill contains details on the proposed amendments including changes to definitions, rates of duty, and penalties.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    268 views10 pages

    UGANDA Excise Duty (Amendment) Bill 2018

    Uploaded by

    jadwongscribd
    This document is a bill that proposes amendments to Uganda's Excise Duty Act of 2014. The bill aims to: 1) raise the point of accounting for excise duty on telecommunication services; 2) introduce interest for unpaid excise duty; 3) enhance excise duty on certain goods; 4) amend excise duty on telecom services; and 5) introduce excise duty on cooking oil and motorcycles at first registration. The bill contains details on the proposed amendments including changes to definitions, rates of duty, and penalties.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The document proposes amendments to Uganda's Excise Duty Act to raise the point of accounting for telecommunication services, introduce interest for unpaid excise duty, enhance excise duties on certain goods, amend excise duty on telecommunications services, and introduce excise duties on cooking oil and motorcycles.

    The proposed amendments include raising the point of accounting for telecommunication services, introducing interest for unpaid excise duty, enhancing excise duties on certain goods, amending excise duty on telecommunications services.

    Cooking oil and motorcycles at first registration will be subject to new excise duties of Ushs 200 per litre for cooking oil and Ushs 200,000 for motorcycles.

    BILLS

    SUPPLEMENT No. 3 29th March, 2018.


    BILLS SUPPLEMENT
    to the Uganda Gazette No. 16, Volume CXI, dated 29th March, 2018.
    Printed by UPPC, Entebbe by Order of the Government.

    Bill No. 11 Excise Duty (Amendment) Bill 2018

    THE EXCISE DUTY (AMENDMENT) BILL, 2018

    MEMORANDUM

    The object of this Bill is to amend the Excise Duty Act, 2014, to raise
    the point of accounting on telecommunication services; to introduce
    interest for unpaid excise duty and limit the interest payable to the
    amount of the unpaid principal tax; to enhance excise duty in respect
    of certain excisable goods; to amend the excise duty on
    telecommunications services; and to introduce excise duty on
    cooking oil and on motorcycles at first registration.

    MATIA KASAIJA, (MP)


    Minister o f Finance, Planning and Economic Development.
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    THE EXCISE DUTY (AMENDMENT) BILL, 2018

    ARRANGEMENT OF CLAUSES

    Clause

    1. Commencement

    2. Amendment of Act 11 of 2014.


    3. Amendment of section 4 of principal Act.

    4. Amendment of section 10 of principal Act.

    5. Insertion of section 15 A in principal Act.


    6. Amendment of Schedule 2 to principal Act.

    1
    Bill No. 11 Excise Duty (Amendment) Bill 2018

    A Bill for an Act

    ENTITLED

    THE EXCISE DUTY (AMENDMENT) ACT, 2018

    An Act to amend the Excise Duty Act, 2014, to raise the point of
    accounting on telecommunication services; to introduce interest
    for unpaid excise duty and limit the interest payable to the
    amount of the unpaid principal tax; to enhance excise duty in
    respect of certain excisable goods; to amend the excise tax on
    telecommunications services; and to introduce excise duty on
    cooking oil and on motorcycles at first registration.

    Be it e n a c t e d by Parliament as follows:

    1. Commencement.
    This Act shall come into force on 1st July, 2018.

    2. Amendment of Act 11 of 2014.


    The Excise Duty Act, 2014, in this Act referred to as the principal
    Act, is amended in section 2 by inserting immediately after the
    definition of “officer” the following—

    “over the top services” means the transmission or receipt of


    voice or messages over the internet protocol network and
    includes access to virtual private networks but does not
    include educational or research sites prescribed by the
    M inister by notice in the Gazette;”.
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    3. Amendment of section 4 of Principal Act.
    Section 4 of the principal Act, is amended in section 4—

    (a) by substituting for subsection (4) the following—

    “(4) A person providing an excisable service becomes


    liable to pay excise duty on that service on the earlier of the
    following—

    (a) the date on which the performance of the service


    is completed;

    (b) the date on which payment for the service is


    made; or

    (c) the date on which an invoice is issued;” ;.

    (b) by inserting im m ediately after subsection (4) the


    following—

    “(5) A telecommunications service operator providing


    data used for accessing over the top services is liable to
    account for and pay excise duty on the access to the over
    the top services.”.

    4. Amendment of section 10 of principal Act.


    Section 10 of the principal Act is amended by inserting immediately
    after subsection (3) the following subsection—

    “(3a) The Commissioner may, if satisfied that the excisable


    goods have been exported, remit the excise duty chargeable on
    those goods.” .

    5. Insertion of section 15A in principal Act.


    The principal Act, is amended by inserting immediately after section
    15 the following section—

    3
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    “15A. General penalty
    (1) A person who fails to apply for a licence under section
    5 is liable to pay a penalty equal to the amount of duty payable
    during the period comm encing with the last day of the
    application period until the person files an application for the
    licence with the Commissioner, or until the Commissioner
    grants the licence, whichever is earlier.

    (2) A person who fails to furnish a return within the time


    specified under this Act is liable to pay a penalty amounting to
    whichever is the greater of the following—

    (a) two hundred thousand shillings; or

    (b) an interest charge for the period for which the return is
    outstanding calculated in accordance with subsection
    (3).

    (3) A person who fails to pay excise duty imposed under


    this Act on the excisable goods manufactured or imported by
    that person by the due date is liable to pay interest on the unpaid
    duty at a rate of two percent per month, compounded, for the
    duty which is outstanding.

    (4) Where a person pays interest under subsection (3), and


    the duty to which it relates is found not to have been due and
    payable by the person and is refunded, the interest relating to the
    amount of the refund, shall be refunded to that person with an
    interest of two percent per month, compounded.

    (5) A person who fails to maintain proper records for any


    period required by this Act is liable to pay a penalty equal to the
    amount of duty payable by the person for that period or ten
    currency points per filing period, whichever is the higher.

    (6) Where a person knowingly or recklessly—


    4
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    (a) makes a statement or declaration to an officer of the
    U ganda Revenue Authority which is false or
    misleading in a material particular; or

    (b) omits from a statement made to an officer of the


    Uganda Revenue Authority, any matter or thing
    without which the statement is misleading in such a
    manner that—
    (i) the duty payable by the person exceeds the duty
    that was assessed as payable, based on the false
    or misleading information; or

    (ii) the amount of the refund claimed was false,

    that person is liable to pay a penalty equal to the


    amount of the excess duty, refund or claim.

    (7) Where the interest due and payable under subsection (3)
    exceeds the aggregate of the principal tax, any interest in excess
    of the principal tax shall be waived.

    6. Amendment of Schedule 2 to principal Act.


    Schedule 2 of the principal Act, is amended in Part 1—

    (a) by inserting immediately after item 2 (c) the following—

    30% or Shs. 230 per litre, whichever


    ‘(d) Opaque beer
    is higher”

    (b) by substituting for item 3 the following—

    “3 Spirits
    U ndenatured spirits
    60% or Shs 2000 per litre, whichever
    (a) made from locally
    is higher;
    produced raw materials
    5
    Bill No. 11 Excise Duty (Amendment) Bill 2018

    Undenatured spirits made 100% or Ush 2500 per litre,


    (b)
    from imported raw materials whichever is higher;
    80% or Ush 1300 per litre,
    (c) Ready to drink spirits
    whichever is higher.”

    (c) by substituting for item (4), the following—


    “4 Wine
    Wine made from locally 20% or Shs 2000, per
    (a)
    produced raw materials litre,whichever is higher;
    80% or Shs 8000, per litre,
    (b) Other wine
    whichever is higher.”

    (d) by inserting immediately after item 5 (b) the following—


    ‘(c) Powder for reconstitution to 15% of the value’
    make juice or dilute- to -
    taste drinks, excluding pulp;

    (e) by substituting for item 8 the following—

    8. Fuel
    (a) M otor spirit (gasoline) Shs. 1200 per litre
    (b) Gas oil (automotive, light, amber for Shs.880 per litre
    high speed engine)
    (c) Other gas oils Shs.630 per litre
    (d) Gas oil for thermal power generation Nil
    to national grid
    (e) Illuminating kerosene Shs.200 per litre
    (f) Jet A1 and aviation fuel Shs.630 per litre
    (g) Jet A1 and aviation fuel imported by Nil
    registered airlines, companies with
    designated storage facilities or with
    contracts to supply airlines

    6
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    (f) by substituting for item 13 the following—
    “ 13 Telecommunications services
    (a) Airtime on m obile cellular, 12% of the fee charged;
    landlines and public pay phones
    (b) Over the top services Ushs 200 per user per
    day of access;
    (c) Internet data Nil;
    (d) Money transfer or withdrawal 15% of the fees
    services, including transfers and charged;
    withdrawal services by operators
    licensed or permitted to provide
    communications or money transfers
    or withdrawals but not including
    transfers and withdrawal services
    provided by banks
    (e) Value added services 20%

    (0 M obile money transactions of 1% of the value of the


    receiving, paym ents and transaction;
    withdrawals
    (g) Incoming international calls, except USD 0.09 per minute.”
    calls from the Republic of Kenya,
    the Republic of Rwanda and the
    Republic of South Sudan

    (g) In item 14, by substituting for “ 10% of the fees charged”appearing


    in the third column, “15% of the fees charged”;
    (h) by inserting immediately after item 17 the following—

    “ 18. Cooking oil Ushs 200 per litre;”

    19. Motorcycles; at first registration Ushs 200,000;

    7
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    20. C onstruction m aterials for developm ent of Nil
    industrial parks or free zones by a developer whose
    investment is at least two hundred million United
    States Dollars;
    21. Construction materials of a factory or warehouse Nil
    exclusive of those available on the local market,
    locally produced raw materials and inputs to an
    operator within the industrial park, free zone, single
    factory or other business outside the industrial park
    or free zone who meets the following requirements—
    (a) a minimum investm ent capital of thirty
    million United States Dollars in the case of a
    foreigner or ten million United States Dollars
    in case of a citizen of a Partner State of the
    East African Community;
    (b) carries on business in—
    (i) agro processing;
    (ii) food processing;
    (iii) medical appliances;
    (iv) building materials;
    (v) light industry;
    (vi) autom obile m anufacturing and
    assembly;
    (vii) household appliances;
    (viii) furniture;
    (ix) logistics and ware- housing,
    (x) information technology; or
    (xi) commercial farming;

    8
    Bill No. 11 Excise Duty (Amendment) Bill 2018
    (c) seventy percent of the raw materials used are
    sourced locally, subject to their availability;
    (d) directly employs a minimum of one hundred
    Ugandans; and
    (e) provides for substitution of thirty percent of the
    value of imported products;
    22 Locally produced materials for construction of Nil
    premises and other infrastructure to a hotel or
    tourism developer whose investment capital is at
    least fifteen million United States Dollars of a room
    capacity exceeding one hundred guests.

    23 Furnishings and fittings or locally produced Nil


    materials for construction of premises and other
    infrastructure to a hospital facility developer whose
    minimum investment capital is at least ten million
    United States Dollars and who develops a hospital at
    the level of a national referral hospital with capacity
    to provide specialised medical care.

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