The Uganda Law Society called for careful consideration and further deliberation before enacting laws related to Islamic Banking in Uganda.
Expressing concerns over potential ramifications, society emphasised the importance of addressing various legal and practical challenges associated with the proposed legislation.
During an appearance before Parliament’s Committee on Finance, Planning and Economic Development, Cephas Birungi, a Partner and Team Leader at Birungi, Barata & Associates and a representative of the Uganda Law Society, underscored the need for a cautious approach to implementing Islamic Banking.
Birungi, who appeared before the committee on Monday, 26 June 2023, highlighted potential risks and the necessity for comprehensive understanding and preparation before introducing new tax bills.
“I have an understanding that the staff of Uganda Revenue Authority (URA) have not been trained in Sharia Law and Sharia law taxation, and players like us who practice tax have not had time with this. Remember the portals of URA for Electronic tax are set in certain terms, so it means you are going to change that software to conform to those provisions,” Birungi said.
He expressed his belief that implementing the legislation without proper software development would be premature and pose implementation challenges.
