Clerics at Wandegeya Mosque in Kampala have urged President Yoweri Museveni to hastily assent to the Financial Institutions Amendment Bill 2023.
While observing Eid-AL-Adha prayers on June 28th, 2023, these clerics said the bill presents pretty impressive opportunities to bail the Muslim fraternity in Uganda from biting poverty.
In its sitting on Tuesday June 27th, 2023 chaired by Speaker Rt. Hon. Anita Among, Parliament passed a series of bills aimed at harmonizing issues relating to Islamic Banking Products, only setting aside the Income Tax Ammendment Bill for committe and government concurance.
Muslim clerics throughout Uganda greatly hailed Parliament for its renewed commitment to actualize Islamic banking in the country, saying the move will hasten economic empowerment among Muslims.
Sheikh Ali Kizza Kasule, the Imam for Wandegeya mosque while leading the Eid-AL-Adha prayers yesterday contended that if the president signs the bill into law, livelihoods of Muslims in Uganda will be improved at the highest level.
Relatedly the Imam for Kawempe Mosque Sheikh Ibrahim Ssemakula said the Muslims fraternity in Uganda have for long waited for the law to take center stage, such that their lives are improved, because funds borrowed from financial institutions under the arrangement of Islamic banking have no interest rates, which take a heavy toll on the incomes of the citizens.
The Financial Institutions Act was amended in section 115B (2) to remove provision for a Sharia Advisory Council, which MPs said would be over legislation, instead opting for Bank of Uganda to institutionally address operational issues relating to Islamic Banking.
The MPs also passed the excise Duty Amendment Bill 2023 a move that automatically leads to the change schedule 2 of the Excise Duty Act and place a 15% excise duty on ledger, ATM and Withdrawal fees, to bring Islamic banking products under the same tax regime as other banking products.
Legislators also unanimously passed the Amendment to the second schedule of the Stamp Duty Act to reflect an UGX. 15000 charge on Islamic banking-related agreements.
The value Added Tax Amendment Bill, which harmonizes the reporting time for conventional banking practices and the Islamic Banking was also passed by members, bringing the country to the start of Islamic Banking financial Products by all commercial banks.
In her remarks after these amendments, Speaker Anita Among described the laws as an Eid-al-Adha gift for the Muslim community that has been advocating for the introduction of Shariah-compliant banking products, and vowed to deal with those who have plans to counter the amendments.
“I want to put this on record. People have been lobbying not to have this Islamic banking passed, but we must pass it,” Hon. Among said.
Section 155 (B) of the act was amended to provide for Islamic banking; to provide for bancassurance; to provide for agent banking; to provide for special access to the Credit Reference Bureau by other accredited credit providers and service providers; and for related purposes.
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