What
is Excise Duty?
It is any duty of Excise imposed under the Excise Law. It is generally
imposed on goods that are manufactured and some services offered
in Uganda. A few selected imported goods attract Excise Duty.
Who
is liable?
The following goods and services are liable to Excise Duty as specified
in the
Finance Act 2001.
- Beer
- Wines
- Spirits
- Soft
drinks e.g. soda, Juices
- Cigarettes
- Fuel
Airtime/Service
fee on cellular phones
How is it charged?
Excise duty is payable on Ex. Factory price of the manufactured
goods. This includes:
- Raw
materials
- Manufacturing
costs
- Bank
charges
- Profits
- Other
costs, charges, expenses incidental to the factory including the
distribution costs.
Excise
Duty is an ad valorem (percentage) tax based on the ex. Factory price
of the manufactured goods or as a minimum specific tax per a given
quantity on a few selected items like cigarettes .
The
current rates are set-out below:
| Product
|
Duty
Rate % |
|
Beer |
60%
|
|
Spirits |
45%
|
| Soft
Drinks |
15%
|
| Cigarettes |
130%
|
| Airtime/Service
fees |
7% |
These
rates are subject to change as announced by the Minister of Finance.
How do I register?
Any person manufacturing excisable goods must be licensed by the
Commissioner-General of Uganda Revenue Authority. The licence is
renewable on an annual basis.
a)
The application for a licence to manufacture excisable goods is
made on Form E1. the applicant is required to attach a plan of the
factory in which it is proposed to manufacture excisable goods.
b)
An inspection of the factory to be licensed is done by the URA staff
to ensure that there is:
i)Provision
for a secure Excise stockroom (Finished Goods Store)
ii)Secure stores for raw materials.
iii)Suitable office accommodation of the URA Resident Officer.
a.)Approval
of the license is granted on Form E2 after payment of a few of Ug.
Shs. 20,000/=.
How
do I account for Excise Duty?
Each
manufacturer is required to maintain the following records.
(i)Stock
book Form E6
This
record is also referred to as Appendix A. It contains details of
the daily receipts into and deliveries from the stock room.
(ii)Appendix
B: This is a summary of the records is Appendix A on a monthly basis.
- It
records stock brought forward from the previous months
- Total
receipts into the stockroom for the month.
- Total
deliveries from the stockroom during the month.
- Balance
carried forward to the next months.
(i)Production Book contains records of the quantities manufactured
on a daily basis.
(ii)Sales/delivery Books Records
of dispatches from the factory gates.
At
what point is the tax due?
Excise Duty is due and payable when the goods are delivered from
the stockroom or when an invoice is raised.
When is excise duty Payable?
At the end of each month the manufacturer will prepare an Excise
Account on form E9B-2 (Goods) or Form E9B-1 (Services) which he
then submits to a designated Revenue Collecting Commercial Bank
on or before the 21st day of the month (for goods) and by the 15th
day of the month (for services) following the month of sale.
Fore
more information, contact:
The
Commissioner's Office,
Domestic Indirect Taxes Department
Plot 37,Jinja Road
Tel: 041-34665/341785
Fax: 057193
Email: localexcise@yahoo.com
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