Uganda: MPs reject proposal to exempt bread and old computers from VAT
Nsereko said bread or any other inputs like wheat should be exempt from VAT to make them affordable for citizens
MPs rejected a proposal by Kampala Central MP Muhammad Nsereko to exempt bread, wheat and old computers from Value Added Tax (VAT).
Raising the proposal in front of the house, Nsereko said that bread or any other input such as wheat should be exempt from VAT to make them affordable for citizens, who he said are currently struggling with soaring commodity prices. base.
“As long as it (wheat) is declared as an input in bread making, let it be exempt,” Nsereko proposed.
However, his proposal was rejected by lawmakers when it was voted on.
Buzaaya County MP Martin Muzaale said the 11th Parliament should develop an approach to thoroughly review tax laws to ease their burden on citizens.
He said that instead of just looking at bread, it would have been just as good if Parliament had amended by reduction or outright exemption the VAT on fuel, which he said had an effect on all other commodities.
Nsereko had also proposed removing VAT on computers over five years old so that more families could afford to buy them for their children at school.
Budama North MP Fox Odoi Oywelowo, however, was of a different view.
“A five-year-old computer should only be destroyed at the end; it poses a danger to the environment. Destroying them is expensive and Uganda cannot afford it,” he said.
Speaker of Parliament Anita Among said it would be better to provide the requirements for assembling computers in the country instead of encouraging the import of older computers.
“Are we encouraging this country to be a dumping ground? If we can have Kiira Motors (a vehicle manufacturing and assembly plant), why can’t we instead push for an assembly plant (of computers )?” she asked.