However, there have been several measures that have been implemented by the Government of Uganda to prevent the spread of Covid-19, leading to a shutdown of many of the economic activities in both domestic and international trade, such as closure of the international airport except for cargo, mandatory closure of non-essential businesses, compulsory stay at home of non-essential workers, among others.
The government has already announced certain tax relief measures such as extension of filing return dates.
However, a crisis like this calls for bigger tax measures that can form part of the larger economic impetus, which government may provide to bring the economy back on track.
Further owing to the prevailing economic uncertainty, companies are likely to find it extremely difficult to estimate their tax liability in the first two quarters of FY 2020/2021 hence government should waive the 20 per cent under provisioning penalty during FY 2020/21.
Also, international cooperation may be sought to analyse the best tax policy measures to update our policies to counter the economic crisis precipitated by Covid-19.
