SHARE NOW

The government through the minister of Finance, is considering the possibility of introducing a tax on bank cash withdrawal.

This comes after the budget consultative meeting held on 05, Feb 2021, between Bank of Uganda, Uganda Revenue Authority, Telecom Operators and Uganda Communication Commission last week at ministry of finance office.

“Following our budget consultative meeting held on February 5th, 2021, at this ministry [of Finance] attended by officials from Uganda Communications Commission, Ugandan Revenue Authority, Telecom Operators and Bank of Uganda, it was proposed that we explore taxation of cash withdrawals, from commercial banks,” Patrick Ocailip, the deputy secretary to the treasury in Ministry of Finance in the letter written to the Governor, Bank of Uganda.

In the letter written to Governor by Ocailip state that “We, therefore, wish to seek your opinion on the proposal and also request you to avail us with data on all categories of withdrawals for our further review and determination. We require tis date for the past three financial years.”

According to the ministry of finance, this will help in promoting non cash transactions and improve tax compliance in addition to raising revenue

Currently mobile money withdrawals are subject to 0.5% excise duty but on the counter, agency banking and ATM withdrawals in commercial banks are not subjected to the same tax. It is note worthy that this would encourage cashless transactions promote e-commerce, improve tax compliance in addition to raising revenue.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *