Kampala, Uganda
Uganda Law Society (ULS) has raised concern over the recent public notices issued by URA reminding all professional bodies to voluntarily declare any professional certificates and licenses for purposes of paying stamp duty on each certificate. In 2020, Parliament enacted the Stamp Duty (Amendment) Act, 2020 imposing a stamp duty of Ugx 100,000 on every professional license or certificate.
Several professional associations in Uganda led by ULS filed a constitutional petition against the government’s Stamp Duty (Amendment) Act of 2020. The petitioners argue that the act, which imposes an additional stamp duty on professionals, is unconstitutional and violates their fundamental rights.
The petitioners further contended that the law unfairly discriminates against private practitioners, imposing a burden on them compared to other professionals in the same fields. They argue that the provision was enacted to circumvent previous court decisions that had struck down a similar tax, thereby infringing on the principle of separation of powers. The petitioners asserted that the purpose of the provision is not regulatory but rather restrictive, impeding the freedom to practice their professions. Though the hearing of the case was completed in October 2021, a judgement has not been issued to date.
Aggrieved parties have continued to argue that instead of increasing the tax base, URA has instead adopted a system of imposition of further taxes on the few taxpayers who already have tax many burdens such as Pay as You Earn (PAYE), government levies for the acquisition of licenses and mandatory fees to various professional bodies as required by law.
