• info@seatiniuganda.org
  • +256 707481726
SEATINI
  • Home
  • Contact
  • info@seatiniuganda.org
  • +256 707481726
SEATINI
  • Home
  • About Us
    • Who We Are
    • Our Vision, Mission & Values
    • Our Staff
    • Board of Directors
    • Our Partners
  • Thematic Areas
    • Trade, Investment & Sustainable Development
    • Financing for Development
    • Building Alternatives for Social & Economic Justice
    • Equator School of Development Policy
    • Institutional Development
  • RESOURCES
    • Blog and Newsroom
    • Career Centre
    • Events
    • Publications
      • Policy Briefs
      • Discussion Papers
      • Research Studies
      • Annual Reports
      • Downloads
    • Newsletter
    • Media Center
      • Statements/Position Papers
      • Photo Gallery
      • Videos
      • Press Releases
    • Tenders
    • Forum
  • Engage With Us
    • Contact Us
    • Feedback and complaints

CSOs Call on Government to Drop the Proposed Taxation of Cash Withdrawals from Commercial Banks.

Homepage News CSOs Call on Government to Drop the Proposed Taxation of Cash Withdrawals from Commercial Banks.
News

CSOs Call on Government to Drop the Proposed Taxation of Cash Withdrawals from Commercial Banks.

February 14, 2021
By SEATINI
0 Comment
93 Views

On 14th February 2021, Civil Society Organisations (CSOs) under the auspices of the Tax Justice Alliance Uganda including SEATINI Uganda, Oxfam Uganda, Foods Rights Alliance , Civil Society Budget Advocacy Group together with Federation of Small and Medium-sized Enterprises – Uganda held a press conference to voice CSO concerns on the proposal by the Ministry of Finance, Planning and Economic Development (MoFPED) to levy a 0.5% Excise Duty on cash withdrawals (including on the counter, agency banking and ATM) from commercial banks starting FY2021/22.

The proposal to tax cash withdrawals was reached recently in a budget consultative meeting between the Ministry of Finance and other stakeholders such as the Uganda Revenue Authority (URA), Uganda Communications Commission (UCC), telecom operators and Bank of Uganda (BoU).

While reading the CSO Statement on the Proposed Taxation of Cash Withdrawals from Commercial Banks, Jane Nalunga, SEATINI Uganda Executive Director noted that the proposed taxation of cash withdrawals is likely to deepen the tax burden instead of broadening the tax base because in most cases money banked is already taxed i.e. Pay As You Earn (PAYE).

“We acknowledge the fact that it is critical for the government to raise revenue to finance public goods and services but it should not burden the already burdened tax payers,’’ she said.

Sophie Nampewo, a Budget Policy Specialist at CSBAG explained that the move is double taxation, noting that many ‘‘would-be’’ taxpayers will be discouraged from using banking services. She also added that the move is likely to subject individuals whose incomes are already taxed to double taxation and therefore, the tax proposal is already unfair.

According to John Walugembe, the FSME – Uganda Executive Director, noted that the move is likely to increase operational costs for many businesses which might in turn discourage people from using banking services. The present banking culture coupled with the weak infrastructure are not supportive of this move.

Agnes Kirabo, the Executive Director at FRA – Uganda on the other hand argued that imposing the 0.5% additional tax will only further constrain banks to the extent of laying off more Ugandans from jobs because the e-banking, which the government claims to be seeking to expand, naturally shrinks job opportunities for Ugandans.

Joseph Olwenyi, the Coordinator, Financing for Development at Oxfam Uganda reiterated that the proposal will not achieve intended objectives but will discourage people from banking and cause far reaching negative implications thus constraining financial inclusion.

“Government should therefore venture into avenues that promote financial inclusion in the country and also raise revenue while ensuring fairness, equity and inclusiveness,’’ he added.

As a way forward, Civil Society Organisations shared various proposals which government can consider towards generating the much needed revenue but at the same time put in place fair and equitable tax systems and measures.

 


Previous Story
EXPERTS SPEAK OUT ON TAXING BANK CASH WITHDRAWALS
Next Story
TAXING CASH WITHDRAWALS IS DOUBLE TAXATION – SEATINI UGANDA

Related Articles

SEATINI Uganda holds a multi-stakeholder dialogue on tax and Illicit Financial Flows

On 26th February 2021, SEATINI Uganda in partnership with OXFAM...

SEATINI Uganda and partners hold meeting on Debt Relief, Restructuring and DRM

On 25th February 2021, SEATINI Uganda with support from Open...

Leave your comment Cancel Reply

(will not be shared)

Most Read Posts

  • Open Letter to the Member States of the African Regional Protocol for the Protection of New Varieties of Plants Thursday, 1, Dec
  • 2018 Tax Measures Tuesday, 8, May
  • Development partners avail Shs1.5b to promote tax compliance, accountability Tuesday, 20, Nov
  • MPs scrap Tax on agricultural produce Thursday, 16, May
  • Kenya School of Law ordered to admit Ugandans Thursday, 23, Feb

Subscribe to our Newsletter

Follow us

Tweets by SeatiniU

Get in touch

The Southern and Eastern Africa Trade Information and Negotiations Institute – (SEATINI) Uganda

P. O Box, 3138, Kampala
Plot 806, Block 213, Bukoto-Kisasi Road – Kampala
– info@seatiniuganda.org
– +256 414 540856

Thematic Areas

  • Trade, Investment and Sustainable Development
  • Financing for Development
  • Building Alternatives for Social & Economic Justice
  • Equator School of Development Policy

Quick Links

  • Who we are
  • Join the Forum
  • Blog and Newsroom
  • Publications
  • Events
  • Engage with us

Connect with us

        

 

Join our mailing list


Copyright © 2020 SEATINI. All Rights Reserved
Translate »

[ Placeholder content for popup link ] WordPress Download Manager - Best Download Management Plugin

SearchPostsLogin
Wednesday, 3, Mar
PROGRAM OFFICER – AGRICULTURAL TRADE FOR RURAL TRANSFORMATION
Wednesday, 3, Mar
PROGRAM OFFICER – EQUATOR SCHOOL FOR ALTERNATIVE DEVELOPMENT MODEL
Wednesday, 3, Mar
FUNDRAISING ASSISTANT
Wednesday, 3, Mar
PROGRAM OFFICER – DEBT AND AID
Wednesday, 3, Mar
PROGRAM ASSISTANT – INVESTMENT FOR SUSTAINABLE DEVELOPMENT
Wednesday, 3, Mar
JOB TITLE – PROGRAM OFFICER – INVESTMENT FOR SUSTAIBALE DEVELOPMENT

Welcome back,

Need Help? Chat with us
Start a Conversation
Hi! Click one of our member below to chat on WhatsApp
The team typically replies in a few minutes.
Seatini Uganda