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Mpango, said here on Tuesday evening that the government has rescinded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.
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