Kampala, Uganda | THE INDEPENDENT | The Open Forum Initiative-TOFI has petitioned the High Court Civil Division to quash the Rental Rates (Income) Tax Regulations issued by the Finance Minister, Matia Kasaijja in January this year. Uganda Revenue Authority-URA and Attorney General are respondents to the suit.
The not for profit policy and tax advocacy firm says the regulations that were published in the national gazette on March 13th, 2020 increased the tax for individuals and companies with rental properties along roads, lanes or streets from 20 to 30 percent effective July 1, 2020.
The regulations also compel people who earn rental income from more than one building to provide accountability and expenses of the buildings and pay tax for each building separately. However, TOFI says the regulations didn’t get the necessary parliamentary approval as provided for under the Income Tax Act.
Emmanuel Ajal, TOFI’s executive director says the failure to follow the laid down procedures denied the affected taxpayers an opportunity to participate in the drafting of the new regulations.
In his affidavit, Ajal contends that the Rental Rates (Income) Tax Regulations, 2020 is illegal and shouldn’t be condoned by the court or any other law-abiding citizen.
Through its lawyers of Festo and Company Advocates, TOFI says the application is a matter of public importance, which will affect countless individuals should court fail to quash the contested regulations.
TOFI wants the court to issue an order prohibiting the government and Uganda Revenue Authority from enforcing the Income Tax (Rental Rates) Regulations of 2020.
Court is yet to summon the Attorney General and Uganda Revenue Authority to file their defence in the matter before it is allocated to a Judge for hearing.
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