Kampala’s biggest real estate firm, Meera Investments, has made proposals to the Ministry of Finance, ahead of the tabling of the amendments in a new tax regime.
Meera Investments, owned by Ugandan billionaire Sudhir Ruparelia, on April 2, 2020, wrote a detailed petition to Mr Matia Kasaija, the minister of finance, asking that he looks into the implications of the proposed Tax Amendment Bill 2020 on investments and economy at large.
Sudhir, who restricted himself to his area of business, the real estate sector, says some clauses in the tax amendment bill 2020 are likely to negatively affect the real estate industry in terms of increasing the cost of rent, kill businesses, as well as lead further loss of jobs at the time the country is suffering adverse effects of the Covid19 pandemic.
In the petition to the ministry of Finance Mr Matia Kasaija, copied to the President of Uganda Mr Yoweri Museveni, Speaker of Parliament Mrs Rebecca Kadaga Uganda Revenue Authority among others, Meera Investments explains the complexities arising when the bill is passed in its current form.
Sudhir then penned authoritative proposals, based on experience in the sector, and adds that he had consulted his tax experts.
“We have had consultation with our tax lawyers, Kampala Associated Advocates, and we write to inform you that some of the bills will have an adverse effect on many of our businesses and we seek your indulgence to prevent an adversity,” the letter reads in part.
Among changes the government wants to introduce is the VAT Amendment bill in which an “owner of more than one commercial building shall account the tax on each building separately and shall not claim input of incomplete buildings on the tax collected from complete buildings.” Sudhir warns that amendments will causing accounting complications, affect the cost of rent, make cost of investment high and discourage buyers of property, among others.
Sudhir says despite the global pandemic of COVID-19 caused by the corona virus, he and his team of experts were willing to discuss and offer suggestions on how best the government can improve its tax regime, especially on real estate.
“Our team, together with our lawyers, Kampala Associated Advocates, is available to have a teleconference to discuss these challenges…” said Sudhir.
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