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URA rejects Museveni’s tax exemption grant directive

> Uganda Revenue Authority has refused to release goods meant for the Kampala Hilton Hotel project despite a directive by President Yoweri Museveni (pictured) to grant the Aya Group another tax holiday for goods meant to finish the Shs490 billion project. File photo

What you need to know:

The latest information is contained in a March 20 letter by Aya Group chairman Mohammed Hamid to Finance minister Matia Kasaija in which he brings out frustrations with URA and ministry of Finance, threatening to abandon the project that started in 2007, with free land offered by government.

Uganda Revenue Authority has refused to release goods meant for the Kampala Hilton Hotel project despite a directive by President Museveni to grant the Aya Group another tax holiday for goods meant to finish the Shs490 billion project.

The latest information is contained in a March 20 letter by Aya Group chairman Mohammed Hamid to Finance minister Matia Kasaija in which he brings out frustrations with URA and ministry of Finance, threatening to abandon the project that started in 2007, with free land offered by government.

“Up to now, our goods have not been released from Uganda Revenue Authority due to sabotage,” Mr Hamid wrote.

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President Museveni on February 12, wrote to the Minister of Finance, directing for the latest tax exemption for the hotel project, reasoning that the project was to create jobs.

In his March 20 letter, Mr Hamid threatens to abandon the project, reasoning that the delay in implementing the President’s directive on tax exemption has escalated costs of maintaining labour, expatriates and engineers.

“We are left with no option but to close the project and chase all the workers until URA and ministry of Finance decide to cooperate and pay the tax as per our agreement with the government,” Mr Hamid’s letter read in part.

However, in an interview with Daily Monitor on Monday, URA commissioner for customs Richard Kamajugo said the tax body is wrongly being dragged into this matter, given that they are an enforcement agency.

He said Aya Group should sort out its issues with ministry of Finance who then will advise accordingly.

“I have spoken to them (owners of AYA) before and taken them through the laws and all regulation pertaining to the waiver. And the authority to deal with all that is the Ministry of Finance.”

In a January 30 letter, Finance state minister Aston Kajara said the exemption would be granted up to June 30, but funds were yet to be released to facilitate the same. “This is to inform you that after extensive consultations, your request has been granted up to June 30th, 2015,” the letter reads in part. (NMG)

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