Parliament has passed the Value Added (Amendment) Tax Bill, 2019 approving VAT exemption of imported mathematical and geometry sets used in schools.
Members of Parliament in a plenary session chaired by Deputy Speaker Jacob Oulanyah approved the Finance Committee report recommendation slightly moving away from the government proposal to exempt only mathematical and geometry sets used for technical and vocational education.
The new tax measure comes into effect on 1st July when the FY2019/2020 starts.
The report was presented by the Committee Chairperson Henry Musasizi in which other items like supply of imported crayons, rulers, technical drawing sets, laboratory chemicals and others were also exempted in order to reduce their cost.
Parliament approved the recommendation without debate also approving VAT exemption on other items proposed by government including aircraft insurance services, rice mills, agricultural sprayers, woodworking machines, welding machines and sewing machines.
MPs further zero-rated supply of drugs and medicines manufactured in Uganda and sundries which are necessary in the medical value chain to make health services more affordable.
Musasizi said that the decision means that suppliers of drugs and medicines will be able to recover input VAT incurred. For comments, call or text us on 0752510225.
