URA: Agricultural Machinery and Feeds Tax Free

(Masaka) – The Uganda Revenue Authority (URA) recently participated in the CBS PEWOSA Agri-business Expo held at Pookino Grounds in Masaka City. During the event, URA emphasized that agricultural machinery and animal feeds are exempt from VAT. The expo served as a platform for URA to engage directly with agribusiness professionals and address their taxation related concerns.

Speaking live on CBS 89.2FM’s Gakyali Mabaga program, Robert Lumanyika, URA’s Supervisor of Tax Education, outlined URA’s primary role of mobilizing and collecting revenue to support essential government services, including infrastructure, healthcare, and education. Lumanyika expressed appreciation for the opportunity to interact with agribusiness stakeholders and gain insights into their taxation challenges.

One key focus of the event was the importance of obtaining a Tax Identification Number (TIN). Lumanyika highlighted that a TIN is crucial for individuals involved in income-generating activities, such as business operations, employment, and property rentals. He pointed out that acquiring a TIN is free and instantaneous.

For those looking to supply goods to the government, transfer vehicles, or conduct large transactions such as land transfers exceeding UGX 10 million, a TIN is required for tax purposes. Lumanyika also clarified that agricultural equipment and feeds, including those for animals and poultry, are VAT exempt. Additionally, savings and credit cooperative organizations (SACCOs) are not subject to income tax. He noted that individuals earning above UGX 2.82 million annually are required to pay taxes.

Addressing concerns about counterfeit drugs and fertilizers, Lumanyika emphasized that these illegal items should be intercepted at One Stop Border Posts (OSBPs). OSBPs consolidate all relevant government agencies, including URA, UNBS, NDA, and Immigration, to streamline the clearance process for goods entering the country.

Ewekitiibwa Noah Kiyimba, Minister for Lukiiko, Cabinet Affairs, Protocol, and General Duties in the Katikkiro’s Office, commended the exhibitors, particularly government agencies, for their participation in the expo. He encouraged more public awareness about the benefits and obligations related to taxation and urged farmers to engage in value addition to benefit from tax-free exports.

Owekitiibwa Hajji Hamis Kakomo, Minister of Agriculture and Cooperatives Buganda Kingdom, echoed Kiyimba’s call for increased sensitization efforts to improve tax compliance among taxpayers. The expo, which concluded on Monday, attracted over 250 exhibitors showcasing a diverse range of products.