Uganda: Hotels not excluded from VAT anymore; rates to increase at least by 18%!

update (15 Nov 2013): The "Association of Uganda Tour Operators" just announced via their facebook page, that [...] In a letter addressed to Bonifence Byamukama, Chairman AUTO from Keith Muhakanizi, the Permanent secretary to the treasury in the Ministry of finance, VAT exemption on the supply of hotel accommodation in tourist lodges and hotels outside Kampala District was reinstated. This implies that upcountry accommodation can operate as before without the levy of the 18%. Therefore, members who had paid the VAT can seek for a refund. [...]

update (26 Aug 2013): We just got this retweet of our tweet from 21 Aug 2013:

@travelcomments @Guide2Uganda  As far as we have been informed this is still only a proposal ad has yet to be passed by parliament.
— GeoLodges Uganda (@GeoLodges) August 26, 2013

update (21 Aug 2013): According to Ugandan newspaper Daily Monitor (online edition), the government of Uganda agreed to postpone the proposed VAT on hotel accommodation to 01 July 2014 as part of a government policy to review and rationalise tax exemptions. [more]

Effective from 01 July 2013, accommodation establishments in Uganda will no longer be excluded from the 18% value added tax (VAT) usual in the country. Travellers planning to visit Uganda, as well as travellers who have already made bookings in Uganda for visits after 01 July 2013, must expect that the by then mandatory 18% VAT will come on top of the rates at all hotels, lodges, resorts, hostels etc. The decision to end the exemption granted for accommodation establishments was announced by the Minister of Finance in Uganda, Maria Kiwanuka, during her presentation of the 2013/14 national budget to Parliament at the Serena Kampala Hotel on 13 June 2013.