Government Moves To Tax Rich More

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In short
Godwin Denis Tumusiime, a Policy Analyst with Uganda Revenue Authority, says the High Net Worth Individual Taxation proposal follows an observation that taxation mainly targets the poor.

Wealthy individuals in Uganda may soon be compelled to pay more taxes once government agrees to the High Net worth Individual Taxation (HNWIs) proposal.



It is believed that through the High Net Worth Individual Taxation proposal, Wealthy individuals will pay more taxes so that income is evenly distributed. It also expected that more revenue will be mobilised from the tax payers. 
 
Godwin Denis Tumusiime, a Policy Analyst with Uganda Revenue Authority, says the High Net Worth Individual Taxation proposal follows an observation that taxation mainly targets the poor.
 
He says Uganda Revenue Authority has already established a desk for High Net Worth Individual Taxation. 

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Other areas being targeted for High Net Worth Individual Taxation include, individuals that hold majority shareholding in companies whose earnings have in the past not been taxed, farmers with high value commercial forests, animal ranches and plantations. 

The public's known rich persons are also being targeted for this tax. Importers and exporters of goods and services worth Shillings 500 million per annum will also be eligible for the High Net Worth Individual taxation.
 
Shareholders in companies with annual turnover of Shillings 50 billion will also face extra tax. 
 

It is also expected that High Net Worth Individual Taxation will address the informality regarding taxation in the country. 

It is believed that not everything that is transacted on comes to the limelight. Tumusiime says the High Net worth Individual Taxation will go behind the veil to appreciate transactions that are happening but are never taxed. 

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A number of taxation experts have indicated that most personal incomes Uganda are never taxed yet it could increase the country's incomes. 

They say that there is a large gap between the tax paid on the overall earnings in the country and that the tax expected to be paid on income-generating activity is worrying. 

Income and corporate tax rates in Uganda are 30% per annum at the highest bracket with tax revenues contributing on average 12% to the GDP. Currently Uganda Revenue Authority has registered slightly above one million tax payers in a population of close to forty million.