Uganda, May 8 -- Manufacturers and industries will be required to pay Value Added Tax (VAT) to government for all taxable goods or services given out to their employees as donations.

The new tax developments follow the passing of the Value Added Tax (Amendment) Bill 2024 by Parliament on Monday, where clause 5 of the Bill provides that any VAT registered employer intending to extend incentives in terms of donations to the employees will be required to account for the taxes collected from the donations.

READ: The politics of taxation and citizenship

Taxing Christmas gifts

Clause 5 of the Bill states that "the supply of goods or services by an employer who is taxable person to an employee, for no consideration shall be regarded as the s...