Find visitors' favorite businesstravel Hotels And.... Book your best!

Uganda Civil Aviation Authority (CAA) wants VAT Exemption On Airport Service Charge

The Civil Aviation Authority (CAA) has asked the Uganda Revenue Authority to exempt it from paying Value Added Tax (VAT) on the airport service charge. Samalie Kiseka, the director finance at the CAA, said airlines were not given sufficient time to prepare for the tax.

She added that many airlines had sold tickets to passengers without charging VAT. The passenger service charge is charged on the airlines ticket. "We have had complaints from airlines and operators that it is going to affect the number of passengers they handle and it will in the end affect tourism," Kiseka said.

When the airport was still under the Government, airport tax was collected under the Directorate of the Civil Aviation as land revenue to the Government from passengers embarking from the airport. Kiseka said since the CAA is an autonomous entity collecting its revenue to sustain itself, what used to be airport tax was now being collected as an airport service charge on which URA has introduced VAT.

Speaking at the closure of the first public accountants' economic forum at Entebbe Imperial Resort Beach Hotel recently, Kisekka noted that charging VAT on airport service charge is against international guidelines governing international airports.

"The guidelines governing the international airport service charge globally is that it is supposed to be used for funding facilities the airport provides to passengers such as security, immigration and bonding ranges," she said. According to the international guidelines, airport service charge, even if it is collected by the state or an authority, must be tax free.

"In the East African region, when you go to Rwanda you are not taxed, in Tanzania it is tax free, in Burundi and Kenya is also free, except that in Kenya they charge a commission of Ksh2 for collection, which is handed over to the government," she added.

"We are still negotiating with URA to see how best this is going to be applied, but it will be better if the international rules are followed," Kiseka added.

Amos Wekesa, a member of the Uganda tourism board, observed that there is still need to promote Uganda's tourism by ensuring favourable conditions for tourists.


By Agnes Nantambi
The New Vision Newspaper
30-July-2013

Click here to post comments

Return to Frequently Asked Questions about Uganda Taxes & News.



Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page

then...

feel free to ask our business travel consultants.





Book a Prisons & Correctional
Charity Tour


Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
africaug.com
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter


Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services


Our Sponsorship Policy


Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages



Uganda Hotels Directory

Uganda Hotels Booking Guide


Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide


The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today





Book My Hotel

Please note that all fields followed by an asterisk must be filled in.
YES
NO
YES
NO

Please enter the word that you see below.

  



Uganda Currency

Ex-guide