Who benefits from the tax collected?
Sep 21, 2005
THE way collection of revenue by Uganda Revenue Authority(URA) beyond its target has been hyped is quite disturbing.
By Moses Khisa
THE way collection of revenue by Uganda Revenue Authority(URA) beyond its target has been hyped is quite disturbing.
That the Ugandan revenue collection body can bring in sh700m or so many billions more than targeted can only evoke irritation, exacerbate misery and heighten anguish in a population harassed by poverty, hunger and disease.
For people in the Internally Displaced Camps in northern Uganda, increased tax revenue collection is no different from playing music to a dog! There is no doubt that though increased revenue collection might ideally not have immediate impact on the overall population it can produce mid and long term benefits (with serious institutional and good governance structures), there seems to be no hope of such an eventuality in Uganda.
Has the increased revenue collection translated into improved qualitative and quantitative welfare of the populace? Does the average Ugandan live a better life because URA has collected more than expected?
That abject poverty remains endemic in Uganda and realising the bare minimum for survival is beyond the reach of many rural and urban folks.
The ‘miracle’ of realising more revenue collection than expected should not earn any applause as long as Uganda remains largely donor-dependent. It’s worth noting that the widespread corruption and deeply rooted political patronage, which swallow much of the treasury, are enough to render URA’s successful tax collection inconsequential.
Less than expected revenue is got mainly as a result of calculated and systematic evasion by individuals with military and political ‘connections’ and accomplices, who collude with evaders and obstruct taxation and walk away with hefty sums of money.
These are the people who get their hands on money in the national treasury because they are in the midst of the powers that be.
This special category of Ugandans with ‘exclusive rights’ over national tax revenue got either directly or gathered for them by URA, can be able to seek expensive education and medical services abroad.
Whatever is happening in public education institutions and health facilities in Uganda is out of the picture for them. The other route to scavenging on the national treasury is through cronyism and tribal links. Such connections have been the assured sine qua non to primitive accumulation of wealth in the post colonial ‘African state.’
For an ordinary peasant in a remote village in Uganda, what matters is not the statistical figures showing inflation being contained at 6% nor URA going beyond the targeted tax collection, but rather a tangible improvement in social services.
Poverty is biting ferociously in most parts of the country, but foreign aid taps have been flowing profusely and URA ‘collecting more than expected.’ So where does all that money go? Political patronage, clientalism, outright squander, massive inefficiency and many like those.
In that respect our ‘development partners’ take a share of the blame for if the donor taps were turned off, we would know our priorities.
From irritating potholes in town, poor infrastructure generally, to appalling conditions in health facilities and waning standards of government-owned institutions of learning; the rationale of paying tax in this country leaves a lot to be desired. The fact that private health units and education institutions are being sought and public ones scorned tells a lot about just how much public revenue is channeled to public good.
Even free market proponents will concur that any government worth its salt must prioritise public expenditure in areas of health, education and infrastructure so as to engender productivity.
The writer is a student of Human Rights
THE way collection of revenue by Uganda Revenue Authority(URA) beyond its target has been hyped is quite disturbing.
That the Ugandan revenue collection body can bring in sh700m or so many billions more than targeted can only evoke irritation, exacerbate misery and heighten anguish in a population harassed by poverty, hunger and disease.
For people in the Internally Displaced Camps in northern Uganda, increased tax revenue collection is no different from playing music to a dog! There is no doubt that though increased revenue collection might ideally not have immediate impact on the overall population it can produce mid and long term benefits (with serious institutional and good governance structures), there seems to be no hope of such an eventuality in Uganda.
Has the increased revenue collection translated into improved qualitative and quantitative welfare of the populace? Does the average Ugandan live a better life because URA has collected more than expected?
That abject poverty remains endemic in Uganda and realising the bare minimum for survival is beyond the reach of many rural and urban folks.
The ‘miracle’ of realising more revenue collection than expected should not earn any applause as long as Uganda remains largely donor-dependent. It’s worth noting that the widespread corruption and deeply rooted political patronage, which swallow much of the treasury, are enough to render URA’s successful tax collection inconsequential.
Less than expected revenue is got mainly as a result of calculated and systematic evasion by individuals with military and political ‘connections’ and accomplices, who collude with evaders and obstruct taxation and walk away with hefty sums of money.
These are the people who get their hands on money in the national treasury because they are in the midst of the powers that be.
This special category of Ugandans with ‘exclusive rights’ over national tax revenue got either directly or gathered for them by URA, can be able to seek expensive education and medical services abroad.
Whatever is happening in public education institutions and health facilities in Uganda is out of the picture for them. The other route to scavenging on the national treasury is through cronyism and tribal links. Such connections have been the assured sine qua non to primitive accumulation of wealth in the post colonial ‘African state.’
For an ordinary peasant in a remote village in Uganda, what matters is not the statistical figures showing inflation being contained at 6% nor URA going beyond the targeted tax collection, but rather a tangible improvement in social services.
Poverty is biting ferociously in most parts of the country, but foreign aid taps have been flowing profusely and URA ‘collecting more than expected.’ So where does all that money go? Political patronage, clientalism, outright squander, massive inefficiency and many like those.
In that respect our ‘development partners’ take a share of the blame for if the donor taps were turned off, we would know our priorities.
From irritating potholes in town, poor infrastructure generally, to appalling conditions in health facilities and waning standards of government-owned institutions of learning; the rationale of paying tax in this country leaves a lot to be desired. The fact that private health units and education institutions are being sought and public ones scorned tells a lot about just how much public revenue is channeled to public good.
Even free market proponents will concur that any government worth its salt must prioritise public expenditure in areas of health, education and infrastructure so as to engender productivity.
The writer is a student of Human Rights