The microfinance industry information exchange meeting for 3rd quarter was held on 7th August 2015 at Metropole Hotel in Kampala and it attracted 120 participants.There were 3 presentations focusing on taxation and Tier 4 regulation. The first presentation was on taxation of MFI/SACCOs and was made by Chillanyang Cyprian, Assistant Commissioner Uganda Revenue Authority. He represented Mr. Moses Kaggwa, the Commissioner Tax policy in the Ministry of Finance. The presentation focused mainly on the taxes that are collected from MFI/SACCOs namely VAT, domestic taxes, income tax, stamp duty & excise duty and the tips for being tax complaint. The second presentation focused on the Impact of Taxation on SACCOs and implications of the President’s pronouncement of exception of SACCOs. It was made by Patrick Sserubula, Manager, Institute Of Cooperatives – UCA.
Lastly, there was a presentation on the progress of tier 4 regulation. The presentation was made by Mr. Nelson Mutatina, Financial Services Department-Ministry of Finance Planning and Economic Development. The participants had discussion regarding the topics and agreed on issues for follow up. Taxation is one of the issues that has greatly crippled the performance of SACCOs and in some cases institutions have closed business. Similarly, the Tier 4 bill is soon going to be enacted but the sector still faces the challenge of understanding how the proposed regulation is going to affect their operations.