The government is to start regulating rental fees in Kampala starting next financial year 2017/18 as a way of ensuring that landlords who often dodge taxes are checked.
Bahati who was presenting proposed tax amendments for the next financial year 2017/2018 says a majority of land loads in Kampala have a habit of dodging payments for income tax by under declaring their rental charges from the actual charges collected.
“Most of the landlords in this city have resorted to under declaring their rental fees. This is affecting revenue collections and yet some are charging tenants exorbitant rates. This must stop with the proposed regulations that we intend to implement in the coming financial year 2017/18,” said Bahati.
Bahati says the amendment in the Income tax act will empower the minister of finance and other related agencies like government valuer KCCA, U.R.A to determine the rental charges in Kampala.
Meanwhile, Government has also issued new tax exemptions in the coming financial year 2017/18. As part of his presentation for the six proposed tax amendment bills before the committee, Bahati has also revealed plans by government to wave off exercise duty tax on sugar in the next financial year.
Among other items to be exempted include; unprocessed rice for four months, operations of Bujagali power dam up to 2033 which will reduce in power tariffs, aid funded projects and industries in the radius of 50 from the Kampala as a way of decongesting the city.
However, the minister has also revealed that government is to increase taxes on Tobacco, and also restructure the betting taxes which apparently have been at 35% fully paid by appropriators.
In the new tax proposal to betting and lottery, a winner of any bet will pay 15% and the remaining 20% will be catered for the appropriator.