February 13, 2024.
KAMPALA, Uganda | In a landmark judgment delivered today, the Constitutional Court in Uganda has ruled to abolish the Stamp Duty charge of Ugx 100,000 on professional licenses and certificates. This decision comes as a result of a Constitutional petition filed by several professional bodies, including the Uganda Law Society, the Uganda Medical Association, and the Institution of Professional Engineers, against the Attorney General.
The petitioners challenged the levy imposed by the Stamp Duty (Amendment) Act, 2020, arguing that it constituted double taxation since professionals already pay fees to renew their licenses annually. They also pointed out discrimination, as private practitioners were burdened with the duty while government-employed professionals were exempt.
In her lead judgment, Honorable Justice Irene Mulyagonja observed that the targeted licenses and certificates were already exempt from Stamp Duty charges under existing laws. She emphasized that Parliament had been misled into amending the law to collect stamp duty on instruments already exempted. Justice Mulyagonja declared Section 2 of the Stamp Duty (Amendment) Act, 2020, unconstitutional and void, noting that it imposed an unfair, arbitrary, and irrational burden on private practitioners.
The court highlighted the disproportionate impact of the tax on private practitioners and stressed that the imposition of Ugx 100,000 on top of other professional levies was unjustifiable in a free and democratic society. The judgment emphasized the importance of upholding the rights and freedoms of professionals, ensuring fairness and equity in taxation policies.
