Budget meets donors expectations
Jun 11, 2004
MEMBERS of Parliament, business people and the donor community have generally welcomed the 2004/2005 budget proposals, saying it reflected overall concerns of the population though it falls short of addressing the issue of widening the tax base.
By Steven Odeu, Sylvia
Juuko and John Odyek
MEMBERS of Parliament, business people and the donor community have generally welcomed the 2004/2005 budget proposals, saying it reflected overall concerns of the population though it falls short of addressing the issue of widening the tax base.
The budget presented by the Finance Minister Gerald Ssendaula yesterday did not introduce any new taxes, maintained most of the tax measures, raised excise duty on cigarettes, spirits and proposed further measures to restrict importation of used commodities.
Sigurd Illing, the European Union Ambassador to Uganda, said it was a good budget that reflected most of the issues they had discussed with Government and also represented an input of policies aimed at reducing poverty.
“There have been changes in the budget proposals, but all in the direction we wanted. I think we reached a compromise but always before a compromise we get into situations where we are not happy with one another,†Illing said.
He added, “We have strong interest in seeing the Poverty Eradication Action Plan (PEAP) fully funded, and I think Government defined itself well on this issue.â€
Samuel Odonga Otto (Aruu, Pader) said the budget proposals are the “biggest nationally- organised comedy I have attended. We are going to have good wine here and go home happy after using taxpayers’ money yet constituents can’t afford soap.â€
“I have just returned from my constituency and we are living in different worlds. The offer of 40 tractors for IDPs is an expression of goodwill but wrong priority. My constituents no longer want handouts from WFP or government but need to get income-generating activities that will sustain them,†Otto said.
Abid Alam, the chairman of Uganda Manufacturers Association, said it was generally a good budget, but they would have loved to see more investment incentives pronounced.
“He has done a good job. Tobacco industry and the spirits have again been affected, but we wait to see if manufacturers will start to increase volumes and generating more income as well as more taxes for government,†Alam said.
The chairman of the East African Business Council, James Mulwana (right), said the budget reflected private sector proposals and welcomed the extension of the beginning of the East African Customs Union to next January.
Nsubuga Nsambu (Makindye West) said the budget fell short of addressing concerns for his constituents, especially reduction in fuel taxes, medical equipment and second-hand clothes.
He said the proposed tax increase on used goods would hurt Ugandans who survive on such items.
MP Salaamu Musumba (above) said she had a problem with the structure of the budget speech because it was different from the traditional one. She said the proposed increase in withholding tax from 4% to 6% would hurt the business community.
On graduated tax, she said the new measure was a “political gimmick and I’m glad government is beginning to think about suspension. I will continue supporting, not just the suspension but its complete abolition,†she said.
Jimmy Kinobe (Katikamu North) said, “The overall objective of the budget is noble because it is looking at increasing household incomes.â€
Capt. David Matovu (Kooki) commended government for reducing donor dependency by funding 54% of the budget.
John Ken Lukyamuzi (Rubaga North) said the budget was speculative and presumptuous.
“It lacks realistic practical mechanics of money generation to get it sustained. Worst of all, it fails to address the problem of public utilities,†he said.
He said the budget was quiet on mobile phone and electricity tariffs, medical care and fuel taxes.
Dora Byamukama (Mwenge) said the budget did not clearly address the issue of court awards (now at sh700b), pension and domestic arrears.
Budget Speech in FullEnds
Juuko and John Odyek
MEMBERS of Parliament, business people and the donor community have generally welcomed the 2004/2005 budget proposals, saying it reflected overall concerns of the population though it falls short of addressing the issue of widening the tax base.
The budget presented by the Finance Minister Gerald Ssendaula yesterday did not introduce any new taxes, maintained most of the tax measures, raised excise duty on cigarettes, spirits and proposed further measures to restrict importation of used commodities.
Sigurd Illing, the European Union Ambassador to Uganda, said it was a good budget that reflected most of the issues they had discussed with Government and also represented an input of policies aimed at reducing poverty.
“There have been changes in the budget proposals, but all in the direction we wanted. I think we reached a compromise but always before a compromise we get into situations where we are not happy with one another,†Illing said.
He added, “We have strong interest in seeing the Poverty Eradication Action Plan (PEAP) fully funded, and I think Government defined itself well on this issue.â€
Samuel Odonga Otto (Aruu, Pader) said the budget proposals are the “biggest nationally- organised comedy I have attended. We are going to have good wine here and go home happy after using taxpayers’ money yet constituents can’t afford soap.â€
“I have just returned from my constituency and we are living in different worlds. The offer of 40 tractors for IDPs is an expression of goodwill but wrong priority. My constituents no longer want handouts from WFP or government but need to get income-generating activities that will sustain them,†Otto said.
Abid Alam, the chairman of Uganda Manufacturers Association, said it was generally a good budget, but they would have loved to see more investment incentives pronounced.
“He has done a good job. Tobacco industry and the spirits have again been affected, but we wait to see if manufacturers will start to increase volumes and generating more income as well as more taxes for government,†Alam said.
The chairman of the East African Business Council, James Mulwana (right), said the budget reflected private sector proposals and welcomed the extension of the beginning of the East African Customs Union to next January.
Nsubuga Nsambu (Makindye West) said the budget fell short of addressing concerns for his constituents, especially reduction in fuel taxes, medical equipment and second-hand clothes.
He said the proposed tax increase on used goods would hurt Ugandans who survive on such items.
MP Salaamu Musumba (above) said she had a problem with the structure of the budget speech because it was different from the traditional one. She said the proposed increase in withholding tax from 4% to 6% would hurt the business community.
On graduated tax, she said the new measure was a “political gimmick and I’m glad government is beginning to think about suspension. I will continue supporting, not just the suspension but its complete abolition,†she said.
Jimmy Kinobe (Katikamu North) said, “The overall objective of the budget is noble because it is looking at increasing household incomes.â€
Capt. David Matovu (Kooki) commended government for reducing donor dependency by funding 54% of the budget.
John Ken Lukyamuzi (Rubaga North) said the budget was speculative and presumptuous.
“It lacks realistic practical mechanics of money generation to get it sustained. Worst of all, it fails to address the problem of public utilities,†he said.
He said the budget was quiet on mobile phone and electricity tariffs, medical care and fuel taxes.
Dora Byamukama (Mwenge) said the budget did not clearly address the issue of court awards (now at sh700b), pension and domestic arrears.
Budget Speech in FullEnds