In a raft of 11 stimulus plans, President Yoweri Museveni of Uganda has announced relief for businesses by suspending payment of Pay As You Earn (PAYE) for four months, and said the government would expedite payment of its domestic debt to provide liquidity for private firms that have been affected by the Covid-19 lockdown.
“He is limited on what he can do,” said Fred Muhumuza, an economics lecturer at Makerere University to The EastAfrican. “I would advise those businesses that can afford to pay, for example, PAYE, because this is not a waiver it’s only a suspension to aid short-term liquidity pressures. But you will still have to pay later so you don’t want to be under pressure to make bulk payments in December when you can afford to pay it today,”
Read also:https://afrikanheroes.com/2020/05/13/tanzania-kenya-uganda-agribusinesses-secure-e2-million-grants/
Here Is What You Need To Know
- According to the new order, corporations and medium-sized enterprises affected by the lockdown in Uganda will be allowed to delay payment of corporation tax or presumptive tax due between April and June, while those in manufacturing, tourism, horticulture and floriculture have up to September 2020.
- President Museveni also proposed waiver of interest on tax arrears and said the Bank of Uganda had already announced measures to ease pressure of loan repayments to commercial banks. The Uganda Development Bank will be recapitalised to the tune of Ush1 trillion (about $2.5 billion).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.