Last week, councilors of Kalungu and Lyatonde districts passed a resolution to start taxing various ceremonies in the two districts. The ceremonies to be taxed include; weddings, introductions, birthday and baptism parties.
The move, seeks to raise local revenue. According to the resolution, effective this new financial year, 2018/19 residents will pay between Ugx. 20,000 and Ugx. 100,000.
In Lyantonde district, for example, small parties will pay Ugx. 20,000, while medium parties will pay UGX. 50,000. On the other hand, big party organizers will pay Ugx. 1 00,000.
Ms. Florence Namara Kabahuma, the Lyantonde District finance committee chairperson, says the move is aimed at raising local revenue in the district since such parties are a luxury.
According to Ms. Kabahuma, the district has been struggling to raise Ugx. 170 million in local revenue after taxi parks and markets were cut off from its tax base.
Nsubuga Munakukaama, the speaker for Kalungu Rural Sub-county, the new levies on parties will help boost the district?s tax base to improve service delivery. Fred Muhangi, the Lyantonde District chairperson, revealed that the Ugx. 170m currently collected is projected to double when the new tax comes into force.
Last month, Parliament passed the Excise Duty (Amendment) Bill, 2018 with amendments approving government proposed tax on Mobile Money transactions and Social Media.
According to the approved bill, the social media tax, which will be levied on every mobile phone subscriber in Uganda who uses platforms such as WhatsApp, Twitter and Facebook, will amount to Ugx, 200 per day.
Source: Daily monitor