SEATINI-UG alongside members of the Tax Justice Alliance including, Oxfam, Civil Society Budget Advocacy Group (CSBAG),Uganda Debt Network(UDN), Action Aid Uganda (AAIU), Citizens Watch-Information Technology (CEW-IT), Women and Girl Child Development Association (WEGCDA) and Inter University Tax Justice Forum, issued a press statement at SEATINI Uganda offices in Kampala this 21st April 2017 to present observations and recommendations in respect to the tax measures that were presented to Parliament.
SEATINI-UG with other CSO members holding a press conference on 21/04/2017.
The Minister of Finance Planning and Economic Development developed and presented the tax revenue measures for FY 2017/18 contained in the Excise Duty (Amendment) Bill 2017, Value Added Tax (Amendment) Bill 2017, The Income Tax (Amendment) Bill 2017 and the Tax Procedures codes Bill, 2017. For the first time, we have observed that the bills were submitted along with certificates of financial implication, a practice that we commend.
As of half year of the FY2016/17, Uganda has revenue shortfall of UGX 166.44bn partly coming from the customs shortfall of UGX 206.58bn and an offset from the domestic side over performance of UGX 40.14bn. Tax revenue for the FY2017/18 is projected to be UGX 14,682bn. (87.9% of total revenue and grants – 16,698bn) which is 16.9% increase from the FY2016/7 estimates. Uganda Revenue Authority collections for 2017/18 are targeted at about 14.5trillion. This will need concerted efforts from all entities in Uganda including citizens.
Among the proposals, CSOs welcomed the following tax proposals to improve revenue collection and facilitate investment in the FY 2017/18 and beyond including; An increase of Excise Duty from UGX50, 000 to 55,000 per 1000 sticks (soft cup) for cigarettes will increase revenue, 60% proposed tax on malt beer or 1860 per litre, whichever is higher under the excise duty (amendment) bill, lotteries and Gaming Act, 2016, the inclusion of another categorization for the fruit juice and vegetable juice, except juice made from at least 30% of pulp from fruit and vegetables grown in Uganda will encourage our home industries and strengthen the Buy Uganda Build Uganda policy as well as boost the agriculture sector, withholding tax rate applicable to winnings from sports betting and pool betting of 15% is commendable, increase on imported furniture and furniture assembled in Uganda from 10% in FY2016/17 to 20% FY2017/18 to encourage local production.
However there were a number of concerns raised by the CSOs. Among them was the issue of tax exemption given to Bujagali dam. A question arose as to whether there will be reduced power tariffs to the benefit of consumers or instead the burden will befall the tax payer!
Günther Nooke, speaking at the Konrad Adenauer Stiftung event in Brussels
Günther Nooke, Angela Merkel’s representative to Africa, offered a gloomy prognosis of November’s Africa-EU summit in Abidjan on Tuesday (11 April), saying trade between the continents was “almost irrelevant” and that the African Union required major “institutional reform”.
The summit comes against a backdrop of a slew of measures, such as the German Marshall Plan for Africa, the EU’s new Migration Compacts, and Emergency Trust Funds for Africa, the Sustainable Development Goals and the EU’s New Consensus on Development – all seen as kick-starting a fresh dynamic between the world’s poorest continent and Europe.
But Nooke – who is Commissioner for Africa at the German Ministry for Economic Cooperation and Development – painted a much gloomier picture at a Brussels event hosted by the Konrad Adenauer Stiftung.
His criticisms will be all the more stinging as Germany will this summer host the G20 summit in Hamburg, explicitly devoted to a focus on Africa.
By Rick Rowden
Africans are insisting on actual economic development which is leaving European trade negotiators exasperated. Rick Rowden explains why their stand is historic and right. This article was published in The Mint (Issue 1, Spring 2017). In one of the most under-reported major stories coming out of Africa, the dominant idea that “free trade” is the best development strategy for poor countries is being given its most thorough trouncing in decades.
By rejecting proposed free trade deals with the European Union (EU), one of Africa’s largest oil producers, Nigeria, and one of the continent’s fastest growing economies, Tanzania, have poked the eye of the entire EU – not to mention Thatcher, Reagan, the Bretton Woods institutions and nearly every free market economist from New Delhi to New York. And yet this incredible story has received very little press coverage outside the continent.
Both countries have dug their heels in by consistently refusing to sign on to proposed deals known as Economic Partnership Agreements (EPAs) which have been in the works for well over a decade. Although most exporters from African countries already have preferential duty-free access into the EU market, the new EPAs would gradually give similar tariff-free access to EU exports into African markets.
While Nigeria has opposed the EPA for the Economic Community of West African States for many years, Tanzania’s new government under John Magafuli surprised many last summer with a last-minute decision to back away from the EPA for the East African Community (EAC) region.
Both countries have recently adopted ambitious plans for industrialisation. And the presidents, trade ministries and national manufacturing associations of both countries have all made it clear they are rejecting the EPAs with the EU explicitly because of concerns that the rules and restrictions within the proposed agreements would undermine their new industrialization strategies.