By Kamugisha Kabahweza Allan
The URA has urged stakeholders in the energy sector to collaborate with their tax consultants to ensure accurate classification of capital assets utilised in the construction of dams and power lines.
Speaking at the Power and Electricity Forum 2024, URA Compliance officer Silas Barasa emphasized the importance of proper asset classification to enable energy companies to claim accurate tax deductions, ultimately enhancing their financial performance.
By engaging with URA, energy sector players can ensure compliance and optimise their tax obligations, addressing previous challenges experienced by generator who relied solely on their tax consultants.
Barasa told the energy players to engage their consultants in order to know what they have placed in their tax returns to avoid getting penalties. He encouraged the energy sector players to engage in classifying the capital assets.
“We are trying to help classify most of these capital assets into different classes such that you get the right deductions to help you in the cash flows of your operations, he added.
Speaking at same event at URA Multi-Purpose Hall, the Under Secretary Ministry of Energy and Mineral Development, Grace Tusiime highlighted opportunities available in the sector in Uganda. She encouraged energy players to seize opportunities in the sector saying Uganda ‘s power sector is thriving and financially viable making it attractive for private investment.
“The 2022 Amendment of the Electricity Act opened new avenues for the private sector to get involved in the energy supply industry and such allowing independent power producers to sell directly to industrial consumers,” Tusiime said.
By working together with URA and leveraging these opportunities, energy sector players can ensure compliance, optimise their tax obligations and contribute to the growth and development of Uganda ‘s energy sector.
