Finance minister Hon. Matia Kasaija as announced an increase from Shs5m to Shs20m in registration fees for personalised number plates.
While delivering the 2016 national budget at Serena conference centre on Wednesday, Kasaija said Parliament approved increase in excise tax on diesel and petrol by Shs100, sweets and confectioneries by 20%.
Excise tax on soft cup cigarettes increased to Shs50,000 per 1,000 stick and Shs80,000 per 1,000 Hinge Lid sticks.
An increase from 1% to 1.5% in Stamp duty on transfer of property was also approved by Parliament.
Households relying on employment income as a main source of livelihood declined from 22% in 2002 to 16%.
The minister said taxpayers who merge or acquire loss-making businesses and continue to operate this same business after this transaction, will be allowed tax relief for such losses in order to promote Uganda’s investment climate and facilitate mergers and acquisitions.
VAT relief will be granted in respect of supplies procured from the domestic market for aid-funded projects, in order to cure the imbalance suffered by domestic suppliers and producers.
Producers of solar, wind and geothermal energy will be allowed relief on VAT incurred on their business inputs, in order to reduce the cost of production of alternative sources of energy.
VAT imposed on imported services used by Business Process Outsourcing (BPO) companies will be refunded at the time of export or offset if the services are consumed in Uganda.
Kasaija said the performance of non-tax revenue remains low, accounting for only 1 to 2% of total revenue collection, despite concerted reforms over the last five years.
President Yoweri Museveni later revealed that US$400m in taxes per year is lost due to tax evasion by telecom companies.