RELIGIOUS institutions will now enjoy habitual tax waiver but under
rigorous control measures to check likely cheats.
Finance
and Planning Minister, Dr Philip Mpango, said here on Tuesday evening that the
government has rescinded the new system that had required religious
institutions to pay tax first and then apply for refund.
“After
receiving views from various stakeholders, including Members of Parliament
(MPs), we are convinced that the system will deter or delay execution of vital
projects by religious organisations,” said Dr Mpango as he clarified some
issues that MPs rose while debating the budget speech.
In
his 2016/17 budget proposals, the minister had proposed the new system that
required religious bodies to pay taxes and then apply for refund subject to an
audit to prove that the exemption was appropriately used.
“In
recognition of the great contribution of religious institutions in the
provision of education and health services, I annul the system that requires
upfront payment of tax,” said Dr Mpango, citing deregistration as one of the
proposed measures against the relief abusers.
However,
religious institutions are required under the new system to submit their
requirement for imported goods in every start of the calendar year, with proof
that exempted goods in the previous year were used as the law requires.
The
institutions have also to submit names, titles, signatures, photographs,
addresses and mobile phone numbers of people authorised to handle exemption
matters.
But,
the waiver applicants will have to secure letters from their Street/Village
Executive Officers and District Commissioners, certifying the existence of the
institution or project and demand for goods on which exemption is sought.
source Daily news
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