Excise Duty Act

Section Interpretation Section In this Act, unless the context otherwise requires— “ aircraft ” includes every description of craft used in aerial navigation; “assessment” means— (a) the ascertainment of excise duty under this Act; (b) the ascertainment of the amount of interest and any other amount payable by a person under this Act; or (c) a decision of the Commissioner which, under this Act, is subject to objection and appeal; “ Authority ” means the Uganda Revenue Authority established by the Uganda Revenue Authority Act; “ beer ” includes ale, porter, and any other description of beer and any liquor which is made or sold as a description of, or substitute for, beer and which contains more than two percent of proof spirit but does not include— (a) liquor as defined in the law relating to liquor; or (b) any kind of beer prescribed by regulations; “ cigar ” means a cigar, cheroot, or cigarillo prepared from tobacco; “ cigarette ” means a cigarette prepared from tobacco and includes any form of tip and the paper; “ citizen ” means— (a) a natural person who is a citizen of a Partner State of the East African Community; or (b) a company or a body of persons incorporated under the la...

Section Associate Section Without limiting the general effect of subsection (1) , the following are treated as an associate of a person— where the person is a company— For the purposes of this Act, where a person who is not an employee acts in accordance with the directions, requests, suggestions or wishes of another person whether or not they are in a business relationship and whether those directions, requests, suggestions or wishes are communicated to the first-mentioned person, both persons are treated as associates of each other. a relative of the person, unless the Commissioner is satisfied that neither person acts in accordance with the directions, requests, suggestions or wishes of the other person; a partner of the person, unless the Commissioner is satisfied that neither person acts in accordance with the directions, requests, suggestions or wishes of the other person; a partnership in which the person is a partner where the person, either alone or together with an associate or associates under another application of this section, controls fifty percent or more of the rights to income or capital of the partnership; the trustee of a trust under which the person, or an asso...

Section Imposition of excise duty Section Unless otherwise provided in this Act, excise duty — A person providing an excisable service becomes liable to pay excise duty on that service on the earlier of the following— Subject to this Act, the excisable goods and excisable services specified in Schedule 2 to this Act shall be chargeable with the excise duty specified in that Schedule. in the case of an excisable service, is to be paid by the person providing the service; in the case of a manufactured excisable good, is to be paid by the person manufacturing the excisable good; and in the case of an imported excisable good, is to be paid by the person importing the excisable good. A manufacturer of an excisable good becomes liable to pay excise duty on that manufactured excisable good when the manufactured good is removed from the manufacturer’s premises . the date on which the performance of the service is completed; the date on which payment for the service is made; or the date on which an invoice is issued. A telecommunications service operator providing data used for accessing over-the-top services is liable to account for and pay excise duty on the access to the over-the-top ser...

Section Registration of manufacturers, importers and providers of excisable goods and services Section For the purpose of facilitating the administration of excise duty , a manufacturer, importer or provider of excisable goods or excisable services other than retailers shall apply for registration and the registration of the premises in which the manufacture , provision or dealing in excisable goods or excisable services , other than premises where retailing takes place. The application under subsection (1) shall be in a form prescribed by the Commissioner . The Commissioner may, within one month after receiving the application under subsection (1) , register or refuse to register a manufacturer, importer or provider of excisable goods or excisable services or the premises in which the manufacture, provision or dealing in excisable goods or excisable services takes place. The Commissioner may require the applicant to meet specified conditions before registration of the applicant or the premises . The Commissioner may issue a certificate of registration, with or without conditions. Where the Commissioner refuses to register the applicant or the premises , the Commissioner shall give...

Section Provision of facilities for excise control Section The Commissioner may, for the purpose of ensuring compliance with this Act, require an officer to be stationed on the registered premises of a registered person under this Act. The Commissioner may, for the purposes of subsection (1) , require the registered person to provide and maintain, to the satisfaction of the Commissioner, suitable office accommodation and equipment in the registered premises. A registered person shall provide and maintain at the registered premises storing excisable goods , scales and weights, lights, ladders and other equipment, as may be necessary to enable an officer to take account of, or check by weight, gauge, or measure, all excisable goods or materials in the registered premises .

Section Entry Section A registered person shall not, in the course of manufacture , preparation, sale or storage, of any materials or excisable goods — A registered person shall, before commencing manufacture of excisable goods , make entry in the prescribed manner of each building, room, place, and item of plant in the registered premises , which the registered person proposes to use in the manufacture , preparation for sale, or storage, of materials or excisable goods . An entry under subsection (1) shall specify the purpose for which a building, room, place or item of plant , is to be used and, unless the Commissioner otherwise permits, the mark by which it is to be distinguished. The Commissioner may, by notice in writing to the registered person , require a new entry to be made by the registered person within one month of the date of the notice. make use of any building, room, place, or item of plant , in relation to which entry is required under this section unless there is in force a valid entry; make use of a building, room, place, or item of plant , for any purpose other than that for which it was entered; or effect, without the prior permission of the Commissioner , an al...

Section Storage of excisable goods after manufacture Section All manufactured excisable goods shall, after the process of manufacture has been completed, be immediately removed to a room to be known as the “stock room”. The stock room shall be within the registered premises . The stock room shall not be used for any purpose other than that of storing manufactured excisable goods after they have been manufactured. All manufactured excisable goods kept in the stock room shall be stored in a manner that facilitates the taking of a full account of all the goods. A registered person who contravenes this section commits an offence and is liable, on conviction, to a fine not exceeding seventy-two currency points or to imprisonment for a term not exceeding three years and ie court convicting the offender shall forfeit the excisable goods to the State. A stock book shall be kept in the prescribed form and shall be available for inspection by the Commissioner . The Commissioner may take copies of any entry in the stock book.

Section Deficiency or excess in stock Section Where, upon the Commissioner taking stock of the manufactured excisable goods in the registered premises of a registered person — A registered person — the registered person fails to account to the Commissioner for any excisable goods manufactured by him or her, the excise duty on those manufactured excisable goods shall immediately become due and payable; or any excisable goods are found in excess of the quantity which, according to the stock book of the registered person must be in the stock room, those goods shall be forfeited to the State. who fails to account to the Commissioner for any excisable goods manufactured by the registered person ; or in whose registered premises excisable goods are found in excess of the quantity which, according to the stock book, should be in the registered premises ,

Section Application of information technology Section Subject to conditions, the Commissioner may prescribe the formalities or procedures under this Act which may be carried out by use of information technology.

Section Refunds Section Where the Commissioner is satisfied that excise duty has been overpaid, the Commissioner shall— A person liable to pay excise duty may apply to the Commissioner for a refund of any excise duty paid in error or in excess of the excise duty assessed or due. An application for a refund under this section shall be made to he Commissioner in the form and manner prescribed by the Commissioner . apply the excess in reduction of any other duty due from the person liable to pay excise duty ; or at the written option of the person liable to pay excise duty , apply the balance of the excess, if any, in reduction of any outstanding liability of the person liable to pay excise duty in regard to other taxes not in dispute. In this section, “any other duty” means a duty other than excise duty . Where the Commissioner is required to refund an amount of excise duty to a person under this Act, the Commissioner shall pay simple interest on the amount of the refund at the rate of two percent per month commencing thirty days after the date of the application for the refund and ending on the last day on which a refund is made. Notwithstanding subsection (4) , a person liable to e...

Section Liability to duty on re-importation Section Where a remission or refund of excise duty has been granted in respect of excisable goods or excisable services which have been exported and those excisable goods or excisable services are subsequently unloaded in Uganda for home consumption, those excisable goods or excisable services are liable to excise duty in force at the time of the unloading.

Section Excisable goods or excisable services granted remission liable to duty on disposal Section Subject to this Act, a person who has been granted a remission or refund in respect of excisable goods or excisable services or is in possession of excisable goods for which a remission or refund has been granted, shall not subsequently deal with those excisable goods or supply those excisable services in a manner inconsistent with the purpose for which the remission or refund was granted. A person who deals with excisable goods or supplies or excisable services in a manner inconsistent with the purpose for which the remission or refund was granted, is liable to pay the excise duty which would have been paid if the remission or refund had not been granted. Where excisable goods to which subsection (1) applies are sold or disposed of without payment of the excise duty to which they are liable, the excisable goods shall be forfeited to the State. Any person who knowingly disposes of or knowingly acquires excisable goods or knowingly provides or knowingly receives excisable services to which subsection (1) applies without the duty on the goods or services having been paid, commits an off...

Section Payment of excise duty Section The Commissioner may, if satisfied that a plastic product— A person liable to pay excise duty shall pay the duty on the date the person files a return with the Commissioner , or shall, in the case of an assessment, pay the excise duty within forty-five days after receipt of the notice of assessment. Where excisable goods on which excise duty has been paid are converted into other excisable goods liable to excise duty , the converted excisable goods shall be liable only to the difference between the excise duty on the converted goods and the excise duty originally paid before the conversion. Where excisable goods on which excise duty has been paid are converted into approved healthcare or medical products, a refund of the excise duty shall be provided to the manufacturer of the approved healthcare or medical products. The Commissioner may, if satisfied that the excisable goods have been exported, remit the excise duty chargeable on those goods. is for use in packaging of products for export ; is for use in packaging medicaments; or is manufactured from recycled plastics, remit or refund the excise duty paid under this Act. The Commissioner shal...

Section Prices quoted to include excise duty Section The price advertised or quoted for an excisable good or service shall include excise duty and the advertisement or quotation shall state that the price includes excise duty .

Section General penalty Section Any person who fails to furnish a return within the time specified under this Act is liable to pay a penalty amounting to whichever is the greater of the following— Where a person knowingly or recklessly— omits from a statement made to an officer of the Authority , any matter or thing without which the statement is misleading in such a manner that— A person who fails to apply for registration under section 4 is liable to pay a penalty equal to the amount of duty payable during the period commencing with the last day of the application period until the person files an application for registration with the Commissioner , or until the Commissioner grants the certificate of registration, whichever is earlier. ten currency points; or an interest charge for the period for which the return is outstanding calculated in accordance with subsection (3) . Any person who fails to pay excise duty imposed under this Act by the due date is liable to pay interest on the unpaid duty at a rate of two percent per month, compounded, for the excise duty which is outstanding. Where a person pays interest under subsection (3) , and the duty to which it relates is found not...

Section Regulations Section Without limiting the general effect of subsection (1) , regulations made under this section may— The Minister may, by statutory instrument, make regulations to better carry into effect the provisions of this Act. provide for the fees to be paid for a certificate of registration issued under this Act; provide for the form of the returns to be made by a registered person ; provide for the securing and collection of excise duty on spirits ; prescribe the maximum and minimum strength of a wort, wash or spirits ; regulate the remission of excise duty including the remission of excise duty on spirits ; and regulate the receipt, storage, warehousing, removal and delivery of spirits , prior to the payment of excise duty . Regulations made under this section may provide that a person who contravenes a provision of the regulations commits an offence and is liable, on conviction, to a fine not exceeding seventy-two currency points, or both.

Section Power to amend Schedule 1 Section The Minister responsible for finance may, by statutory instrument, with the approval of Cabinet, amend Schedule 1 to this Act.

Section Repeal and savings Section Notwithstanding subsection (1) — The East African Excise management Act, 1970 and the Excise Tariff Act, Cap. 338 are repealed. all excise duty due in respect of a transaction that took place before the commencement of this Act shall be due and payable as if the repealed Act were still in force but in case of a default the person shall be dealt with under this Act; all appointments made under the repealed legislation and subsisting at the date of commencement of this Act are taken to be appointments made under this Act; all forms and documents used in relation to the repealed legislation may continue to be used under this Act, and all references in those forms and documents to provisions of and expressions appropriate to the repealed legislation are taken to refer to the corresponding provisions and expressions of this Act.