Parliament has resolved that those applying for professional certificates part with Shillings 100,000 to acquire a certificate or professional licence.
Parliament has resolved that those applying for professional certificates pay Shillings 100,000 to acquire a certificate or professional licence.
The decision was taken during the Tuesday afternoon plenary session chaired by Speaker of Parliament Rebecca Kadaga.
This was during the debate on the consideration of the Stamp Duty (Amendment) Bill 2020. The object of the bill is to amend the Stump Duty Act 2014, to provide for the payment of stamp duty on a professional licence or certificate and to clarify on the requirements for incentives on strategic investment projects.
While presenting his report to Parliament, Henry Musasizi, the Finance Committee Chairperson said that the tax is intended to enable Uganda Revenue Authority (URA) obtain the necessary information about professional service providers for purposes of enhancing their tax compliance and that it also supports the Income Tax Act which requires a Taxpayer Identification Number before a license is issued.
The Minister of State for Planning, David Bahati said that the measure will also increase on the revenue basket.
However, Erute South MP Jonathan Odur said that there was no reason to charge lawyers and other professionals an extra tax since they already pay taxes for practicing.
“That extra Shillings 100,000 would be multiple taxes. We should only be ensuring tax compliance,” said Odur. Bugweri County MP Abdu Katuntu also raised the same query on double taxation.
“The legal profession, lawyers pay income tax like any other. This particular one you are raising, what is it. It is not that government must be there looking to pick money from everywhere. The issue is the principle, not the amount. Why should you tax someone twice?” he questioned.
But Bunyole West MP James Waluswaka argued that some professionals are already earning a lot and that they should be charged even more. “We are talking of professionals, not peasants,” he argued.
However Musasizi insisted on the tax saying that the professionals were earlier exempted. “I take note of the colleague’s concerns but we should also have mentioned to the House that this is also a source where government can raise some revenue. Yes, they pay licensing fees but two years ago, all these professionals were exempted from income tax and if we are to build Uganda together, there are areas we should look at,” he argued.
He added that the license fees paid are not tax but rather a stamp duty that goes to the professional body and thus to the consolidated fund.
“As we know, nobody would be willing to pay tax but we should also appreciate the value, taxes contribute to the economy and that is why we are saying that as a professional, doing away with Shillings 100,000 annually cannot throw you out of practice,” Musasizi explained.
Olive Nakatudde
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