[Uganda] Private Sector Now Wants Total Waiver Of PAYE

12 JUN 2020

Private sector players who initially proposed a deferral of Pay As You Earn (PAYE) tax are now asking for a total waiver saying that the impact of the COVID-19 crisis on the economy has been more devastating than early projections predicted, Daily Monitor reports.

On June 4 President Museveni said his government will defer the payment of PAYE by private companies hit hardest by the lockdown.

However, these companies will have to repay the deferred tax on top of what they will have to pay in the future even though it remains uncertain whether the economy will return to good health in the weeks and months ahead.

President Museveni’s announcement follows earlier and further-reaching pronouncements by some regional governments which waived PAYE altogether for low-income groups, as the lockdown kicked in, in order to put more money in the pockets of their citizens.

It remains unclear whether individual employees in Uganda will benefit from the PAYE deferrals. Initial indications suggest that the measure is intended to secure the liquidity status of companies.

The deferral of PAYE was reportedly one of eleven measures that the President announced during his State of the Nation Address. The measures come as Ugandans begin slowly returning to work - after more than two months under lockdown - following a partial reopening of the economy.

Source: Daily Monitor