Tax experts have given a number of recommendations to Parliament for examination in relation to various tax Bills for the implementation of the Sh50.9 trillion national budget for the fiscal year 2023–2024.
Seven tax bills including the Lotteries and Gaming (Amendment) Bill 2023 now before Parliament were examined by civil society groups (CSOs) under the umbrella of Tax Justice Alliance Uganda (TJAU), and several recommendations were made for parliamentary consideration.
In their proposal for the Lotteries and Gaming (Amendment) Bill 2023, the CSOs suggested raising the tax rate on gaming to 35% in order to be consistent with the betting tax, which is composed of 15% WHT and 20% tax under the Lotteries and Gaming Act.
The Government wants Schedule 4 of the Bill to be changed so that the tax rate for Gaming activity will be increased from 20% to 30% while maintaining the tax rate for betting at 20%.
Gaming and Pool Betting services do not attract VAT. Therefore, a higher tax rate can support Government efforts to address this moral hazard alongside attaining increased revenues as well as promoting equity in the tax system.
Read Also: Uganda plan to increase gaming tax by 10%
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