The tax burden on the common man could increase as the 2014/2015 budget seeks to increase the tax base from domestic revenue. According to Finance Minister Maria Kiwanuka, domestic sources will contribute 12.29 trillion shillings representing 81.8 percent of the 15 trillion shillings budget.The Uganda Revenue Authority is to collect taxes amounting to 9.57 trillion shillings. However, to achieve the set target, taxes have been placed on private schools or educational institutions for commercial gain. Government hopes to generate 15 billion shillings from this. With sports betting outlets now all over the country, a 15% tax has been proposed to be imposed on winnings of sports and pool betting and gambling houses to generate, a move that would generate 8 billion shillings.Ugandans engaged in agriculture have also not been spared the tax burden as government has moved in to tax interest on agricultural loans to raise 25.1 billion shillings to support Minister Kiwanuka’s budget. Value Added Tax (VAT) that is mainly borne by the final consumer has been placed on supply of Printing Services for educational materials, supply of cereals, grown, milled or produced in Uganda, supply of processed milk and milk products, supply of Machinery and Tools for Agriculture, and supply of Seeds, Fertilizers, Pesticides and Hoes.Computer users will now have to dig deeper into their pockets as effective July 1st tax exemption on new computers, computer parts and accessories and computer software licenses have been lifted. With an aim of generating 215 billion shillings, government will be taxing the following supplies as Kiwanuka explains. Meanwhile excise duty of 50 shillings has been imposed on petrol and diesel as government targets to raise 60 billion shillings. Other areas that will have excise duty reinstated include kerosene, sugar and mobile money. Excise duty of 10% has also been introduced on bank charges and money transfer fees with Minister Kiwanuka hoping to generate 22 billion shillings. According to Kiwanuka, the budget seeks to achieve economic growth rate of 7% per annum, keep annual consumer price inflation within single digits and position Uganda in the context of the East African Community integration to ensure competitiveness. It is also aimed at maintaining a prudent level of foreign exchange reserves of at least five months import cover, which can provide a buffer against external shocks and maintain a competitive real exchange rate which can support growth.
Posted on: Thu, 12 Jun 2014 16:26:11 +0000
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