Uganda: New finance minister proposes tax cuts on local beer

In her first budget as Finance Minister, Syda Bbumba proposed tax cuts on locally-produced beer, Daily Monitor reported on June, 12.

Announcing that growth would slow to six per cent on the back of the global economic downturn, Ms Bbumba presented a Shs7.3 trillion budget, up from Shs6.16 trillion in the current financial year.

She made wide ranging tax proposals aimed at improving the business environment and offering ‘expected’ relief to the private sector in the context of the current global economic recession.

“In Financial Year 2009/10 there will be no increases in duty and tax rates, as a measure to stimulate the economy,” Ms Bbumba announced.

To encourage value-addition and barley growing in Kapchorwa, Kabale, Kabarole and other parts of Uganda, the minister has reduced excise duty on beer produced, grown and malted in Uganda from 60 per cent to 40 per cent. The move is a continuation of an almost similar cut in the last budget in terms of percentage points.

12 June, 2009