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Uganda: URA to Refund Sh20b to Motorists
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New Vision (Kampala)
15 May 2008
Posted to the web 16 May 2008
Edward Anyoli
Kampala
THE Commercial Court yesterday ordered the Uganda Revenue Authority (URA) to refund sh20b to over 100,000 motorists.
On behalf of the motorists, Roberts Kagoro and Sempa Matovu sued the tax body over pre-paid road license fees that were incorporated in the price of fuel in 2007. They argued that they had paid a tax that was scrapped.
Fred Muwema, their lawyer, told the court that in 2007, Parliament approved the Finance Act that allowed motorists to be compensated.
Ali Ssekatawa, the URA lawyer, agreed that the motorists were entitled to a refund but the Ministry of Finance was yet to avail the funds.
"URA will respect the decision of the court because the Finance Act stipulates that the motorists are entitled to the refund."
In 2007, the Government abolished road license due to many cases of forgeries.
However, URA issued a statement saying the Traffic and Road Safety Act 1998 had no provision under which the revenue collecting body could compensate the affected motorists.
But Justice Geoffrey Kiryabwire ruled: "The court takes judicial notice of the Finance Act of 2007, in particular section 3, which provides for a refund of license fees paid by motorists for periods beyond July 30, 2007."
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He told each party to clear its own costs of the suit.
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