Government has dropped the proposed new taxes on the various items following pressure from Parliament and other affected players in the economy.
According to sources in Parliament’s Finance Committee, Finance minister Matia Kasaija met some MPs yesterday at the ministry headquarters in Kampala and agreed to drop the proposed taxes in the next financial year budget.
Mr Kasaija and the MPs agreed to suspend the proposed taxes on rentals, kerosene, petrol, beers but resolved to maintain the tax rates for 2019/2020 financial year in order to finance the pre-election year budget.
Lawmakers on the Finance committee held a follow-up meeting on the same day at Parliament and welcomed the minister’s decision as “a step in the right direction.”
The MPs, who attended the closed-door meeting requested not to be named because the minister promised to officially write to the committee before the chairperson presents the report on tax Bills to Parliament on Tuesday next week.
During their meeting yesterday, the legislators exposed details of an emergency closed-door deal in which the government through Ministry of Finance agreed to halt the proposed new tax measures in the pre-election year budget.