The Uganda Revenue Authority (URA) has issued a public notice to clear up confusion regarding the application of a 6% withholding tax on agricultural supplies. The tax body clarified that while the tax no longer applies to raw agricultural products, it remains in effect for processed agricultural supplies.
The URA stated that the 6% withholding tax on goods, materials, and services has been lifted for most agricultural supplies. However, this exemption does not cover products that have undergone processing. As an example, the notice pointed to processed rice, which will still be subject to the 6% tax on gross payments.
This clarification is intended to provide certainty for farmers, traders, and businesses in the agricultural sector, ensuring they understand their tax obligations.
The tax body also highlighted a range of communication channels for taxpayers seeking further guidance. Businesses can reach out for inquiries or clarifications through URA’s toll-free numbers, email, WhatsApp, or by visiting any URA office.
The move is part of the URA’s ongoing effort to streamline tax administration and improve compliance within Uganda’s vital agricultural sector.
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