The Ministry of Works and Transport (MoWT) is set to handle all vehicle registration functions with effect from July 1, 2023. This move is the final stage in the transition of Vehicle registration from Uganda Revenue Authority (URA) to MoWT that commenced three years ago.

The transition was managed in phases, with the first phase including post-registration services such as; Change of ownership, alterations, deregistration, duplicate plates and registration books successfully done. However, phase 2, including the first registration processing, was left with URA until MoWT was ready with a new Motor Vehicle Registration System (MVRS).

In a recent meeting between the Commissioner General of URA, John Musinguzi, and officials from the Ministry, it was revealed that the Ministry would be ready with the new Motor Vehicle Registration System (MVRS) beginning of the next financial year hence the move. To implement this, URA will hand over first-time registration and registration & licensing of foreign registered vehicles (temporary imports in TEVIES).

The new registration system will also capture vehicles coming into the country before the declaration in Asycuda. However, URA shall remain with the management of the revenue processes, thus continuing to collect the related Non-Tax Revenue from the MVRS.
Additionally, MoWT will take over the integrations with the motor vehicle database that URA has provided to various MDAs, including the Insurance Regulatory Authority, Uganda Police and Uganda Registration Services Bureau.

The move also aligns with the Government’s implementation and operationalisation of an Intelligent Transport Monitoring System (ITMS). This system requires the issuance of new digital plates to enable tracking of vehicles and motorcycles to combat crime facilitated by the use of vehicles. The system is to be provided by Joint Stock Company-Global Security.

To implement the system in the next financial year, MoWT issued regulations; requiring car owners to apply for replacing the old plates with digital plates with tracking devices, new number series for each vehicle category and new number series for each vehicle category for each Government agency.

A centralized vehicle register will be provided, and sensors will be inbuilt into the registration plates.

URA has welcomed the move; with the spokesperson Ibrahim Bbossa saying that having all aspects of motor vehicle registration offered by one agency will improve service delivery to Ugandans. He also called it a testament to the success of a project that started three years ago with the signing of a Memorandum of Understanding.

“It comes at a time when we are streamlining services as URA by leveraging on technology to simplify processes and user experience hence offering better service delivery to our clients; for us, that is a win,” he said.

Bbossa added that car owners would be informed of the changes as part of URA’s Taxpayer education programs before implementation.

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At least 37 people died in road accidents during Easter Season.

The revelation was made by Assistant Superintendent of Police (ASP) Faridah Nmapiima.

According to Nampiima, a total number of 76 crashes occurred on our roads; 28 of those were fatal, 40 were serious and 8 were minor. The total number of victims is 113, among which 37 died and 76 sustained serious injuries.

“All the crashes that occurred during the Easter season have a different cause. We have careless overtaking where we registered 4 fatal crashes, 8 serious, and 2 minor, making a total of 14 crashes,” she said.

She said when it comes to overspending, police registered 11 fatal crashes, 14 serious, and four minor, making a total of 29 crashes. We have an unknown cause. We registered six fatal, three serious and one minor, making a total of 10 crashes.

“We have no passengers that died in the medium omnibus and heavy omnibus. We thank all those people who drive buses and coasters for the discipline you exhibited during this Easter season,” she said.

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The Consul General of Uganda’s Consulate in Dubai, Ambassador Henry Mayega, the Chief Executive officer of National Housing and Construction Company (NHCC) Eng. Kenneth Kaijuka and Reportage Properties’ Alkesh Rajput have met to explore potential in the Uganda housing market.

Reportage Properties intends to invest in real estate in Uganda and is seeking to partner with NHCCL in several ventures that will include, in terms of location, but not limited to, Luzira, Bugolobi and Buganda Road.

According to Amb.Mayega, the two companies are to develop a memorandum of Understanding that will guide the partnership. Last week, Reportage Properties launched one of its mega projects at Buganda Road.

Eng. Kenneth Kaijuka, the Chief Executive Officer of NHCCL said it is important that they structure their relationship and are happy to deal with Reportage as their partners.

“Our mandate is to increase the housing stocks in the country, rehabilitate the housing industry and encourage Ugandans to own homes in an organized environment. But also, we are not stopped from getting other construction work and other business,” he said.

He said when the Ambassador is looking for you (Investors), he is looking for money. We have everything starting from construction materials to the market. Then the magic in the equation is normally how we attract favorable financing.

Rajput said when you have an international partner, they put up structures which meet the international standards and the cost will be slightly higher and I cannot afford to sell at an affordable price. But I’m not going to demonstrate that we should get a lot of very expensive units.

“You cannot have two drivers in one car. So, I will drive the car. But I need your support. And your support is very important and essential because you are very strong in this market. And you are the one who basically developed the entire country,” he said.

He said the company is worth $4.5 billion. We have done 11,000 units in six years. We are expanding. We have international presence, which will also add value to our projects in terms of sales.

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The Uganda government plans to impose a 15% withholding tax rate on Unit Trust contributions or Collective Investment Schemes, according to a new income tax law.

The Income Tax Amendment Bill 2023 recently tabled by the Finance Minister before Parliament, the government seeks to introduce 5% and 15% tax rates on the profit earned by members from their contributions to the scheme effective July 1 2023 if the bill is passed into law.

The government says the 5% tax rate will be applied to scheme members with total contributions not exceeding Shs100 million while those with contributions above Shs100 million will be subjected to a 15% tax rate.

According to the proposal, the income tax will be applied by way of withholding tax by the Unit Trusts on the profit amounts credited to the members’ accounts.

Until recently, members of unit trusts have been receiving their incomes tax-free after Uganda Revenue Authority faced an initial resistance when it attempted to start taxing the members’ incomes. This was because there was no clear policy on what to tax and how much to tax.

This proposed amendment is now intended to iron out the ambiguities in the law and make the taxation of the interest income and its administration clearer.

The proposal has, however, drawn criticism from several stakeholders who say the move will discourage investment in unit trusts.

One of them is PriceWaterHouseCoopers who say this proposal sends shock waves in unit trust investment. They said it will discourage investment in unit trusts in the country which is still very low.

 The Capital Markets Authority (CMA), a country’s statutory body responsible for regulating and promoting the development of capital markets in Uganda, also says the tax is a contradiction and that it’s a barrier to savings.

“The introduction of a withholding tax on income earned by investors in Unit Trusts to the contrary is a disincentive for savings,” CMA wrote in a statement.

“It is our understanding that Section 21(1) (t) of the ITA exempts the income of a Collective Investment Scheme from tax to the extent of distribution of the income. The purpose of this exemption is to encourage savings which are still at a relatively low base in Uganda.

“It has further come to the CMA’s attention that there are differences in interpretation of the Income Tax Act within the CIS industry which has led to variances in treatment of Withholding Tax on payment of investors’ interest by the CIS operators,” they added.

 An accumulation of evidence suggests that Uganda may be caught up in a public debt safety trap in which a favorable debt position based largely on Debt Sustainability Analysis results falsely signals that the country has more fiscal headroom to borrow, especially when debt is still below the set national or international limit.

Tax experts say the government is trying to come up with ways to plug a hole in the annual budget deficit after donors cut aid over accusations of corruption and human rights violations.

Already, URA has said it plans to collect Shs29.3 trillion in the 2023/24 financial year. However, it remains to be seen whether they will hit the target given the current low economic growth characterized by high inflation and low private sector investment in the country.

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Margaret Nattabi, National Unity Platform Official Candidate has been disqualified by the Makerere University Guild Electoral Commission from the forthcoming 89^th University guild presidential elections on allegations of involvement in a political debate that turned violent, injuring a student in the process.

Margaret Nattabi was disqualified alongside Suleiman Namwoza (Independent NUP leaning candidate) for allegedly organizing a Guild Kimeza on the night of April 5, 2023 at Mitchell Hall on the night of April 5, 2023, an exercise which was banned from the university.

The political debate is said to have later turned violent leaving one student identified as Robert Sserunjogi injured in the process. Sserunjogi is said to have been among the participants in the Kimeza campaign.

In a letter dated April 06, 2023, Levi Tshilumba, the Chairperson of the 89th Guild Elections said the two candidates have since been disqualified as their actions are contrary to the University’s Guild Statute, Section 10 which calls for a violent free election process.

“This is to inform the Makerere University students’ body that Guild President aspirants Nattabi Margaret (Complex hall) and Namwoza Sulaiman (Mitchell Hall) have been disqualified from the 89th Guild Presidential race,” Tshilumba stated.

“The participation of Nattabi and Namwoza in this event is contrary to Makerere University Guild Statute 2022, Section 10, which stipulates that student elections shall be virtual unless otherwise determined by the University Council,” he added.

However, sources at the venue revealed to this publication that NUP’s Nattabi was not even at the venue where the scuffle happened and that the Dean of Students first met both Nattabi and Namwoza and tried to forge a way forward that seemed non-violent.

The dismissal of the two leading candidates according to sources that preferred anonymity said the dismissal of Nattabi and Namwoza is part of the plot by the University Administration to determine who sits on the University Council, the highest decision-making organ of the University.

Nattabi when contacted for a comment on the matter said the University had always wanted to block her from participating and winning the election and “Now, they are fulfilling what they long wanted.”

Nattabi added that the University is just fighting her on the base of the political party (NUP) yet other candidates are holding the Kimeeza in their halls of residence.

In 2022, Makerere University Council banned physical guild elections at the institution following the death of a student in a scuffle during campaigns for guild elections.

The NUP Principal, Robert Kyagulanyi Ssentamu aka Bobi Wine said this is an affront to the sacred concept of academic freedom and the constitutional rights to speech and association that any academic institution must guard with its very existence.

“Academic freedom requires that students should be able to express themselves freely without fear of repression. Only then can institutions of higher learning achieve their purpose as guardians of reason and inquiry. It reinforces the protection our Constitution guarantees for any citizen to freely express their opinions and associate with any group of their choice,” Kyagulanyi said.

He added that throughout history, those freedoms have been a constant sword against tyranny, injustice & oppression. To them, Uganda owes its independence and so does Makerere’s existence.

“It’s a shame that the University’s myopic leaders are now sacrificing at the altar of political expediency the very freedoms that secured them their current jobs in the first place! If they have any shame, they should reconsider the decision as it sets a terrible precedent,” Kyagulanyi expressed adding, “Comrade Nattabi and other similarly affected candidates should be left to participate in the guild race without being persecuted for their political affiliations.”

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