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 laws of a Partner State of the East African Community in which at least fifty-one percent of the shares are held by a person who is a citizen of a Partner State of the East African Community; “ Commissioner ” means the Commissioner General appointed under the Uganda Revenue Authority Act; “ currency point ” has the value assigned to it in Schedule 1 to this Act; “ distiller ” means a manufacturer of spirits by distillation of a fermented liquor or enguli or by any other process; “ distillery ” means a distiller ’s factory; “ distiller’s warehouse ” means a place of security provided by a distiller and approved by the Commissioner under this Act; “ document ” includes magnetic tapes, disks and microfilms; “ enguli ” means a spirituous liquor including a drink containing liquor, which is conveyed into a receiver in a distillery entered under this Act as an enguli receiver; “ excisable goods ” means goods manufactured in Uganda and imported into Uganda and specified in Schedule 2 to this Act but does include goods exempt from duty ; “ excisable services ” means the services specified in Schedule 2 to this Act; “ excise duty ” means a duty imposed under this Act; “ export ” means to take or cause to be taken out of Uganda; “ goods exempt from duty ” means the goods specified in Schedule 3 to this Act; “ import ”, as used in relation to goods, has the meaning assigned to it in the Value Added Tax Act; “ importer ”, as used in relation to goods, has the meaning assigned to it in the Value Added Tax Act; “ manufacture ” includes the production of excisable goods or any intermediate or uncompleted process in the production of excisable goods or the rectifying or denaturing of spirits ; “ materials ” means the goods from which excisable goods are capable of being manufactured and any residue from the process of manufacture ; “ officer ” includes a person, other than a labourer, employed in the service of the Authority and whose right or duty it is to require the performance of any act in this Act; “ over-the-top services ” means the transmission or receipt of voice or messages over the internet protocol network and includes access to virtual private networks; “ own use ”, in relation to services, means applying the services for non-business use; “ owner ” in respect of any excisable goods , materials , aircraft , vessel, vehicle, plant , or other thing, includes a person who is or holds himself or herself out to be the owner, manufacturer, agent or the person in possession of, or beneficially interested in, or having control of, or power of disposition over, such goods, materials , aircraft , vessel, vehicle, plant , or other thing; “ plant ” includes utensils, presses, machinery, mills, implements, appliances and fittings; “ premises ” includes a building, house, room or place; “ registered person ” means a person registered to manufacture excisable goods , import excisable goods or to provide excisable services under this Act; “ rectifier ” means a person who re-distills spirits removed from a spirits receiver for the purpose of purifying or adding flavour but does not include the re-distillation of enguli “ return ” means a return of excise duty ; “ specially denatured spirits ” means spirits denatured in accordance with a formula prescribed by regulations made under this Act for specially denatured spirits; “ spirits ” means spirits of any description and includes all liquor mixed with spirits and all mixtures and compounds or preparations made with spirits but does not include denatured spirits or engulv , “sugar” includes a saccharine substance, extract, or syrup, rice, flaked maize or any other description of com which in the opinion of the Commissioner is prepared in a manner similar to flaked maize and any other material capable of being used in brewing except malt, com, hops, hop concentrate or hop oil; “ supply ” as used in relation to services, has the meaning assigned to it in the Value Added Tax Act; “ telecommunications services ” means a service for the transmission, emission, or reception of signals, writing, images, sounds, or information of any kind by wire, radio, optical, or other electromagnetic systems and includes the related transfer or assignment of the right to use capacity for such transmission, emission, or reception, the provision of access to global or local information networks, but does not exclude a private network for the exclusive use of the person; “ Tribunal ” means the Tax Appeals Tribunal established by the Tax Appeals Tribunals Act ; “ value added services ” means content, products or services offered in the telecom sector via the mobile platform and includes short messaging service and multimedia messaging service which afford the user flexibility in accessing other services including mobile betting, games, paying for services, products or promotions but does not include standard voice calls, peer to peer short messaging service and multimedia messaging service, fax transmission, internet, mobile money transactions and games promoted by a value added service provider licensed by the National Lotteries and Gaming Regulatory Board; “ value added tax ” means value added tax imposed under the Value Added Tax Act; “ wash ” means the fermented liquor from which spirits are produced by distillation; “ wine ” means liquor of a strength not exceeding fifty degrees of proof which is made from fruit and sugar and which fruit or sugar is mixed with any other material and which had undergone a process of fermentation in its manufacture and includes mead.

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 associate under another application of this section, benefits or may benefit; a company in which the person, either alone or together with an associate under another application of this section, controls fifty percent or more of the voting power in the company either directly or through one or more interposed companies, partnerships or trusts; where the person is a partnership, a partner in the partnership who, 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; where the person is the trustee of a trust, any other person who benefits or may benefit under the trust; or a person who, either alone or together with an associate or associates under another application of this section, controls fifty percent or more of the voting power in the company, either directly or through one or more interposed companies, partnerships or trusts; or another company in which the person referred to in subparagraph (i) , either alone or together with an associate or associates under another application of this section, controls fifty percent or more of the voting power in that other company, either directly or through one or more interposed companies, partnerships or trusts.

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 services . An importer of excisable goods shall pay excise duty at the time of import .

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 reasons in writing for the refusal within one month referred to in subsection (3) . Where the Commissioner registers a manufacturer, importer or provider of excisable goods and services or premises under this section, the Commissioner shall, issue to the applicant a certificate of registration. The certificate of registration shall be in a form prescribed by the Commissioner . The Commissioner shall establish and maintain a register containing the relevant details of all registered persons and their premises of operation under this section. The Commissioner shall cancel a certificate issued under this ection if satisfied that the registered person and the premises no longer meet die conditions for the grant of the certificate. A registered person shall not use the premises for a purpose other than the purpose for which the premises were registered. A person who operates without a certificate of registration issued under this section is liable to pay a fine of twenty currency points for each day of default from the date on which the person commences the manufacture , provision or dealing in excisable goods or excisable services .

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 alteration to any building, room, place or item of plant . A registered person who contravenes subsection (4) 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, or both. Where a person is convicted under subsection (5) , the court shall order the forfeiture of any excisable goods , materials or plant in respect of which the offence has been committed.

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 excise duty who causes delay in determining a correct refund payable to him or her, and leading to a belated refund process, is only entitled to interest with effect from sixty days from the date on which the person filed the delayed return , lodged an application with the Tribunal or the High Court, or submitted to the Commissioner all necessary and satisfactory information required in relation to the refund in question, whichever is the later. The Commissioner shall, within thirty days after making a decision on a refund application under subsection (1) , serve on the person applying for the refund a notice in writing of the decision. A person dissatisfied with a decision referred to in subsection (7) may challenge the decision under the objection and appeal procedure in this Act.

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 offence and is liable, on conviction, to a fine not exceeding forty-eight currency points or to imprisonment for a term not exceeding two years, or both.

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 shall not remit the excise duty paid on a plastic product manufactured from recycled plastic referred to in subsection (5)(c) , unless the recycled plastic used in the manufacture of the plastic product is equivalent to at least twenty percent of the raw material used. In this section, “approved healthcare or medical product” means a product that has been approved by the Minister responsible for finance in consultation with the Minister responsible for health, in accordance with Regulations made under section 16 .

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 to have been due and payable by the person and is refunded, the interest relating to the amount of the refund, shall be refunded to that person with an interest of two percent per month, compounded. Any person who fails to maintain proper records for any period required by this Act is liable to pay a penalty equal to the amount of duty payable by the person for that period or ten currency points per filing period, whichever is the higher. makes a statement or declaration to an officer of the Authority which is false or misleading in a material particular; or the duty payable by the person exceeds the duty that was assessed as payable, based on the false or misleading information; or the amount of the refund claimed was false, that person is liable to pay a penalty equal to the amount of the excess duty, refund or claim. Where the interest due and payable under subsection (3) exceeds the aggregate of the principal tax, any interest in excess of the principal tax shall be waived.

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.