Officials from Hoima District Local Government have raised a number of questions about recent tax changes during an engagement with the Uganda Revenue Authority (URA), seeking clarity on how the new requirements affect their work.The engagement focused on practical tax matters affecting local governments, employees and suppliers, giving participants an opportunity to discuss areas where they needed further guidance from the tax authority.A key concern was the communication of changes in Pay As You Earn (PAYE). Officials asked how such changes are formally communicated and what employers and employees should do to ensure they remain compliant with the revised requirements.The issue of identification also featured prominently, with participants seeking clarification on the use of the National Identification Number (NIN) as the new Tax Identification Number (TIN). They also asked how taxpayers with outdated or unupdated TIN information should proceed.Officials further sought explanations about the 30 percent PAYE rate, particularly how it applies to taxpayers and how the relevant deductions should be handled during payroll processing.The discussion moved to Value Added Tax (VAT), where participants raised questions about VAT deductions on supplies and the implications for payments made to suppliers by local governments.Another concern was the impact of tax amendments on budgets that had already been approved. Officials also asked how suppliers affected by the new Shs300 million VAT registration threshold would be handled, especially in cases where VAT had previously been deducted from their payments.URA officials responded to the various concerns, explaining the applicable tax requirements and providing guidance on compliance. The engagement enabled Hoima officials and suppliers to better understand the changes and how they should be applied in their daily operations.
