Graduated tax to stay
Jun 11, 2004
FINANCE minister Gerald Ssendaula yesterday <a href="http://newvision.co.ug/I/8/449"><b>announced</b></a> that graduated tax would stay for another year as government identifies alternative sources of revenue for local governments.
By Paul Busharizi
and Felix Osike
FINANCE minister Gerald Ssendaula yesterday announced that graduated tax would stay for another year as government identifies alternative sources of revenue for local governments.
In a budget speech to Parliament at Kampala International Conference Centre, Ssendaula announced increases in tobacco and spirit excise duties, withholding taxes, traffic fees and charges in order to bridge a sh30b gap in revenue resulting from Uganda’s entry into the East African Community (EAC) Customs Union.
The union will come into effect in January 2005.
“For 2004/05, graduated tax must be assessed and its payment fully enforced,†the finance minister said.
“The government is studying alternative sources of revenue and a decisive conclusion on this matter will be made by 2005/06.â€
MPs have been pushing for the abolition of the tax, a major source of revenue for local governments.
The budget was presented using power point.
Ssendaula said he hoped to raise an additional sh1.9b from an increase of excise duty on tobacco to 150% from 130%, another sh1.0b by increasing the same duty on spirits to 60% from 45%. He also announced a 10% across the board increase in traffic fees and charges, which would bring in an extra sh5.1b.
He did not say whether the new measures would take effect immediately.
Taxes on safety seat belts were reduced to encourage their use in a bid to reduce road accidents. Taxes on locally produced wine were also reduced.
There was no mention of any pay rise for civil servants as was widely expected.
But healthy workers were the biggest beneficiaries in this year’s budget. They will get a sh38.6b pay rise, only days after they threatened to strike if the budget did not reflect their demands for higher pay.
“An additional sh38.6b has been provided in the next financial year to maintain the enhanced salaries (for health workers),†Ssendaula said.
He also announced a number of measures aimed at promoting economic growth and reducing poverty.
For the second year running, Vice-President Prof. Gilbert Bukenya represented President Yoweri Museveni who is in Georgia, USA for a meeting with leaders of the Group of Eight most industrialised countries.
Among those present were Chief Justice Benjamin Odoki, former president Godfrey Binaisa and diplomats.
Parliament Speaker Edward Ssekandi presided over the day’s proceedings.
Ssendaula said government will announce a policy to minimise importation of used goods like refrigerators and passenger vehicles of more than seven years old.
Ssendaula said the National Insurance Corporation, Kinyara Sugar Works and 20% shares of The New Vision Printing and Publishing Company Ltd would be divested.
He said before the end of September, government will offer the remaining shares in the Development Finance Company of Uganda on the Stock Exchange.
Government also plans to extend telephone network to 154 sub-counties and to establish 32 Internet cafes and 20 multipurpose community tele-centres this year.
The Express Traffic Penalty Scheme, launched by the Police to give on-spot fines, is to cover the whole country.
The scheme is expected to impact on the drivers’ discipline and the citizen’s general compliance with traffic regulations.
“Given the increasing carnage on Uganda’s roads, government will introduce stiff laws and regulations to keep unworthy vehicles and untrained and careless drivers off the roads,†Ssendaula said.
Community service, where minor offenders do community work instead of being imprisoned, will also be rolled out countrywide.
The economy grew by 6% in 2003/04 and Ssendaula said they expect growth to hold steady at 5.9% in 2004/05.
Budget Speech in FullEnds
and Felix Osike
FINANCE minister Gerald Ssendaula yesterday announced that graduated tax would stay for another year as government identifies alternative sources of revenue for local governments.
In a budget speech to Parliament at Kampala International Conference Centre, Ssendaula announced increases in tobacco and spirit excise duties, withholding taxes, traffic fees and charges in order to bridge a sh30b gap in revenue resulting from Uganda’s entry into the East African Community (EAC) Customs Union.
The union will come into effect in January 2005.
“For 2004/05, graduated tax must be assessed and its payment fully enforced,†the finance minister said.
“The government is studying alternative sources of revenue and a decisive conclusion on this matter will be made by 2005/06.â€
MPs have been pushing for the abolition of the tax, a major source of revenue for local governments.
The budget was presented using power point.
Ssendaula said he hoped to raise an additional sh1.9b from an increase of excise duty on tobacco to 150% from 130%, another sh1.0b by increasing the same duty on spirits to 60% from 45%. He also announced a 10% across the board increase in traffic fees and charges, which would bring in an extra sh5.1b.
He did not say whether the new measures would take effect immediately.
Taxes on safety seat belts were reduced to encourage their use in a bid to reduce road accidents. Taxes on locally produced wine were also reduced.
There was no mention of any pay rise for civil servants as was widely expected.
But healthy workers were the biggest beneficiaries in this year’s budget. They will get a sh38.6b pay rise, only days after they threatened to strike if the budget did not reflect their demands for higher pay.
“An additional sh38.6b has been provided in the next financial year to maintain the enhanced salaries (for health workers),†Ssendaula said.
He also announced a number of measures aimed at promoting economic growth and reducing poverty.
For the second year running, Vice-President Prof. Gilbert Bukenya represented President Yoweri Museveni who is in Georgia, USA for a meeting with leaders of the Group of Eight most industrialised countries.
Among those present were Chief Justice Benjamin Odoki, former president Godfrey Binaisa and diplomats.
Parliament Speaker Edward Ssekandi presided over the day’s proceedings.
Ssendaula said government will announce a policy to minimise importation of used goods like refrigerators and passenger vehicles of more than seven years old.
Ssendaula said the National Insurance Corporation, Kinyara Sugar Works and 20% shares of The New Vision Printing and Publishing Company Ltd would be divested.
He said before the end of September, government will offer the remaining shares in the Development Finance Company of Uganda on the Stock Exchange.
Government also plans to extend telephone network to 154 sub-counties and to establish 32 Internet cafes and 20 multipurpose community tele-centres this year.
The Express Traffic Penalty Scheme, launched by the Police to give on-spot fines, is to cover the whole country.
The scheme is expected to impact on the drivers’ discipline and the citizen’s general compliance with traffic regulations.
“Given the increasing carnage on Uganda’s roads, government will introduce stiff laws and regulations to keep unworthy vehicles and untrained and careless drivers off the roads,†Ssendaula said.
Community service, where minor offenders do community work instead of being imprisoned, will also be rolled out countrywide.
The economy grew by 6% in 2003/04 and Ssendaula said they expect growth to hold steady at 5.9% in 2004/05.
Budget Speech in FullEnds