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Religious bodies for tax exemption checks



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Finance and Planning Minister, Dr Philip Mpango, said here on Tuesday evening that the government has rescinded the new system that had required religious institutions to pay tax first and then apply for refund.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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