The Finance minister Matia Kasaija has in a twist of events dismissed claims that his ministry is plotting to tax all categories of cash withdraws at commercial banks in Uganda.
Speaking to journalists today, Kasaija denied any knowledge of a tax proposal.
“Tax on withdrawal of money, I’m hearing it for the first time. I don’t know where you are picking it. Yesterday we were talking about tax measures, I have not seen it as one of the tax measures. I will check with my tax officers. I’m hearing it for the first time’’ said minister Kasaija.
In the letter dated 9th Feb 2020, Patrick Ocailip, the deputy secretary, treasury at the finance ministry, addressed Emmanuel Tumusiime Mutebile -Governor, Bank of Uganda.
The finance ministry says it was suggested during a meeting on 5th Feb 2021 that the tax base be diversified to include commercial bank cash withdraws.
The meeting was attended by a section of key government sectors including Uganda Revenue Authority-URA, Bank of Uganda-BOU, Uganda Communications Commission-UCC, and telecom companies.
Ocailip, in the letter, sought to be availed with data of all sorts of cash withdraws dating back to 3 financial years ago for review.
It also seeks advice from the BOU boss Mutebile on the way forward.
The letter also raises growing concern on how various bank withdraws such as ATM, teller, and agency are being overlooked while telecom companies have been explored already by taxing Mobile Money withdraws at 0.5percent.
