The Constitutional Court has invalidated the imposition of a Shs100,000 stamp duty on professionals in private practice. The ruling, delivered by a panel of five justices, declared the provision under Section 2(h) of the Stamp Duty (Amendment) Act of 2020 as unconstitutional.
The court’s unanimous judgment concluded that the amendment, aimed at collecting stamp duty on licenses and certificates for professionals, violated Article 92 of the Constitution. This decision stemmed from a complaint filed by thirteen professional bodies, including the Uganda Law Society and the Uganda Medical Association.
Justice Irene Mulyagonja, delivering the lead judgment, emphasized that the imposition of stamp duty on professional licenses unfairly burdened private practitioners. She highlighted that such taxation was discriminatory and unjustifiable, particularly considering that professionals already faced various dues imposed by specific legislation governing their respective fields.
Furthermore, the court found fault with Parliament’s decision to pass the amendment, noting that it disregarded previous court decisions prohibiting additional taxes on professional licenses. The justices underscored the importance of upholding the principles of fairness and equality in taxation, especially regarding professionals in both the public and private sectors.
The ruling sheds light on the broader issue of taxation imbalance and the need for legislative measures to address it effectively. Justice Mulyagonja stressed that the imposition of stamp duty on professionals did not align with the constitutional provisions aimed at redressing societal imbalances.
The court’s decision reflects a crucial victory for professionals in private practice, affirming their rights and advocating for equitable taxation policies. It also underscores the judiciary’s role in upholding constitutional principles and safeguarding the interests of all citizens.
In response to the ruling, there is a renewed call for transparency and accountability in tax legislation.
