The Ministry of Finance and Economic Development unveiled a comprehensive framework of incentives aimed at exempting movie production supplies from value-added taxation (VAT). Moses Kaggwa, the Director of Economic Affairs at the Ministry of Finance, made the announcement on February 19, 2024 during a meeting with various stakeholders from the Creative Industry.
One of the primary objectives of the meeting was to discuss the current tax system and its potential impact on the overall competitiveness of the creative sector. Kaggwa emphasized that the government recognized the significant contribution of the creative industry to the nation’s economic growth.
“The Ministry acknowledges the instrumental role played by the creative industry in fostering economic development through talent promotion and revenue mobilization in our country,” stated Kaggwa.
Various other issues pertaining to the creative sector were also discussed during the meeting. These included financing opportunities specific to the sector, identifying potential product market opportunities, ensuring infrastructure development for art and culture, enhancing sector governance and regulation, formalizing sector schools, promoting local content, and enforcing copyright laws.
Representatives from diverse backgrounds within the creative industry attended the meeting, including musicians, filmmakers, visual artists, and fashion designers, among others. Their presence and active participation demonstrated the collaborative effort to address the challenges faced by the sector and unlock its full potential.
With the establishment of these incentives by the Ministry of Finance, movie makers can now enjoy exemptions from VAT when acquiring production supplies. Such incentives are expected to stimulate growth in the film-making industry and attract more investment in the creative sector as a whole.
Industry experts and stakeholders have applauded the government’s proactive approach in recognizing and supporting the creative industry. It is hoped that these initiatives will provide a much-needed boost to the sector, foster innovation, and encourage the creation of high-quality content locally.
This move by the Ministry of Finance aligns with a broader national vision to nurture and promote the creative industry as a vital pillar of economic development. By facilitating an enabling environment with incentives for filmmakers, the government is paving the way for the industry’s success and guaranteeing a vibrant future for the creative sector.
