Multinational Companies should be Exemplary Tax Payers and not Devise Tax Evasion Schemes.
By Joseph Mawejje, Research Analyst EPRC After the Minister of Finance read the national budget on June 12 th 2014, there has been a raging debate on how to finance Uganda’s UGX 11,088 billion proposed tax revenue. Most of the protagonists have been against the reinstatement of VAT on agricultural services. Within this realm, the New Vision, July 30, 2014 carried an article describing how Coca Cola—a leading multinational producer of soft drinks—was negotiating a tax waiver in lieu for providing logistical support to transport medical equipment from the USA to Uganda. The equipment will be provided by Medsave—a USA based medical charity. Negotiations for Tax Waiver Specifically, Coca cola was requesting for exemption of excise duty on all soda products and reduction to 5% of the excise duty on mineral water. In exchange, it was reported, the company would ship to Uganda “donated medical equipment worth US$20 million from the USA.” The arguments given by Coca Cola, th