PRESS STATEMENT-FOR IMMEDIATE RELEASE
Transcription
PRESS STATEMENT-FOR IMMEDIATE RELEASE
PRESS STATEMENT-FOR IMMEDIATE RELEASE CIVIL SOCIETY POSITION ON TAX REVENUE MEASURES FOR FY 105/16 From Left, Julius Mukunda, CSBAG Coordinator, Julius Kapwepwe CSBAG Member, Nelly Busingye, CSBAG Member, and Henry Bazira,CSBAG Member at a Press Conference at SEATINI Uganda Offices on 26th April 2015 Released at a Press Conference held at SEATINI Uganda offices on 26th April 2015 1 Southern and Eastern African Information and Negotiations Institute Page 1 Introduction We the members of Civil Society Organizations Including Civil Society Budget Advocacy Group (CSBAG), SEATINI1 Uganda, ActionAid Uganda (AAIU), Uganda Debt Network (UDN), Development Initiatives (DI), Water Governance Institute (WGI) that are gathered here at SEATINI Uganda offices in Kampala this 26t April 2015 hereby present our observations and recommendations in respect to the tax revenue measures for the FY 2015/16 that were presented to Parliament on 1st April 2015, by Hon Matia Kasaija the Minister of Finance Planning and Economic Development. The Minister’s proposals covered the Finance Bill 2015, Excise Duty (Amendment) Bill 2015, Value Added Tax (Amendment) Bill 2015, the Income Tax (Amendment) Bill 2015 and Business Licenses Bill 2015. POSITIVE TAX PROPOSALS We welcome the following proposals to improve revenue collection in the FY 2015/16 and beyond including; 1. Removal of Excise duty of USD 0.09 per minute on all incoming calls from Northern Corridor Member States (Kenya, Rwanda and South Sudan) – to promote the EAC integration process 2. Impose excise duty on motor vehicle lubricants at 5% - expected to realise UGX 4bn 3. Increase of excise duty on non-premium beers from 20% to 30%. – expected to realise 35bn 4. Increase of excise duty on soft Cap from Shs.35,000/= to Shs.45,000/= and Hinge Lid to from Shs.69,000/= to Shs.75,000/= - expected to realise 10bn 5. Including of Withholding Tax at 6% on income of suppliers of agricultural produce - expected to realise 10bn 6. Imposing Value Addition Tax on discounts - expected to realise 48bn 7. Zero-rate on the supply of cereals where they are grown, milled or produced in Uganda. CSO CONCERNS ON SELECTED TAX PROPOSALS We however, have concerns on the following proposals upon which we make the following observations and recommendations; 1.0 Tax Revenue Measures under the Excise Duty (Amendment) Bill 2015 1.1 Increase excise duty on Petrol and diesel from Shs.950 to Shs.1, 000 and Shs.630 to Shs.680 per litre respectively. Suppliers have a tendency of increasing the pump price regardless of how much the increment in tax is, given Government’s reluctance to regulate the sector. We recommend that Government should regulate fuel companies to prevent disproportionate increases in fuel pump prices because ultimately it increases the cost of doing business. We Impose Annual operator license fees in respect of vehicles and vessels commend Government for the proposal to levy operator license fee on boda Page 2.2 2 2.0 Tax Revenue Measures under the Finance Bill 2015 2.1 Passport Fees: The proposed charge (UGX 150,000) for an ordinary passport is prohibitive. We further observe that whereas the time for obtaining an Express passport has been stipulated, the rest of the categories have not been accorded the same. We again observe that there are no express remedies available to citizens in the event of failure to honour the stated timelines for issuance of the passport. We recommend that: The charge for an ordinary passport be maintained at its current rate (UGX 120,000) The charge for diplomatic/official passport is increased to UGX 300,000 to reflect the diplomatic stature. Timelines be specified for all classes of passports and further propose that Government clearly provides for appropriate remedies upon failure to honor the terms for issuance of a passport. bodas. We however recommend that the fee be increased from the proposed UGX 30,000 to UGX 200,000 annually. This will help streamline boda boda services in the country. 3.0 Tax Revenue Measures under the VAT (amendment) Bill 2015 3.1 Amendment of section 24 and 25 of principal Act: This proposal is risky and likely to be abused by the mining companies, and sets a precedent for other sectors to demand for similar preferential treatment. It is also a veiled exemption that can lead to revenue loss. We recommend that VAT principles should not be applied selectively. 4.0 The Business Licenses (Miscellaneous repeals) Bill, 2015 We observe that there are various fees stipulated under various laws and it’s necessary to eliminate their multiplicity and overlap to achieve efficiency, transparency and competitive business environment. The cooperative societies Act and the investment code are such important laws whose reforms need to be comprehensive through stake holder engagement. We recommend that; The Cooperatives act and the Investment code should be dealt with separate from the other laws that relate to licensing. We further recommend that repeal of laws be made to the extent they relate to harmonization and streamlining of licensing fees particularly Section 9 Rivers Act, Cap.357, 3and 4 of the Hides and Skins (Export Duty) Act, Cap.339, Liquor Act, Cap.93, Industrial Licensing Act, Cap.97,section 11(2) and (3) of the Fish Act, 10(6). Linking taxes and fees to service delivery and tax payer education. Citizens should be sensitized by URA, Local Government Finance Commission and other stakeholders on the revenue sources, their perceived roles, reasons why it is important to pay taxes and linkage between the tax payments and expected service provision. Government should also strengthen transparency, accountability and feedback measures at all levels to curb tax leakages and evasion 5.2 Local Government tax administration; we recommend that in a bid to enhance the revenue base at the local government, the revenue enhancement procedures should be enforced by the revenue enhancement committees. Furthermore, we recommend that Local governments do request for Individual Tax identification numbers linked to everyone’s utility service beginning with urban local governments. This will improve tax returns and compliance 5.3 Revenue Collection data bases; to improve the collections, local governments should invest in establishing, refining and updating revenue data bases in all districts. Government should invest training the local government revenue officers and establish revenue enhancement departments. 5.4 Revise rates and exemptions of Local Service Tax. The Local Service Tax should be revised to include all eligible tax payers in gainful employment including the exempted ones. Page 5.1 3 5.0 OTHER TAX POLICY ISSUES 5.5 Invest in key productive sectors like Agriculture, Trade – given their forward and backward linkages in providing revenue and accelerating poverty reduction. 5.5 Reforming Non Tax Revenues – Government should initiate reforms aimed at enhancing NTR with a view to revising the respective rates upwards to match the current economic circumstances. 6.0 ALTERNATIVE TAX PROPOSALS 6.1 Property tax/ Ground Rent and rental income tax on commercial buildings should be well enforced and regulated; We recommend that; Government should carry out an assessment of various properties to determine the owners of commercial building and rental houses/apartments. Uganda Revenue Authority and other local government agencies should strengthen enforcement mechanisms to collect the taxes Ground rent stamp duty should be strictly assessed and paid. And therefore URA should be key and influential in such enforcement 6.2 Curb Illicit Financial Flows ; We recommend that; Government should strengthen the capacity of Uganda Revenue Authority to curb illicit financial flows. Government should fully implement the Money Laundering Act to curb illicit financial flows. The government of Uganda should establish a mechanism of implementing the recommendations from the High level Mbeki Panel Report that was adopted by African Union in January 2015. 6.2 Taxation on currency conversions Observation; As an international practice, Government could impose a 0.5% tax on all currency conversions Conclusion As Civil Society Organisations, we call upon Government and other stakeholders to put into consideration the above observations and recommendations. Together for an improved tax regime, gender responsive and equitable national development. FOR GOD AND OUR COUNTRY ABICWA District: Abim African Centre for Trade and Development (ACTADE) Website: www.actade.org African Centre for Treatment and Rehabilitation of Torture Victims (ACTV) Page Action Aid International Uganda | (AA - IU) Website: www.actionaid.org/Uganda 4 We the undersigned: The Civil Society Budget Advocacy Group (CSBAG) since its launch in 2004 has made major leaps towards Ensuring that the Ugandan budget making process is more participatory, transparent and citizens’ concerns are prioritized in government budget allocations and implementation. Our membership is comprised of the following 72 institutions: Regional Associates for Community Initiatives (RACI) Website: www.raciug.org Spinal Injuries Association- Uganda District: Kampala Shelter and Settlements Alternatives-Uganda Website: www.ssauganda.org Southern and Eastern African Trade Information and Negotiations Institute (SEATINI-U) Website: www.seatiniuganda.org Real Agency for Community Development Website: www.racd-uganda.org Rwenzori Consortium for Civil competence (RWECO) Website: www.rweco.org Toro Development Network-ToroDev Website: www.torodev.kabissa.org Uganda Debt Network (UDN) Website: www.udn.or.ug Uganda National Health Consumers’ Organization (UNHCO) Web: www.unhco.or.ug Uganda National NGO Forum. Website: www.ngoforum.or.ug Uganda Network of AIDS Service Organization (UNASO) Website: www.unaso.org Uganda Parliamentary Forum on Youth Affairs Website: Uganda Road Sector Support Initiative (URSSI) Website: www.ugandaroadsector.org Uganda Women Entrepreneurs Association Limited Web: www.uweal.co.ug Uganda Joint Christian Council (UJCC) www.ujcc.co.ug Uganda Women’s Network (UWONET) Website: www.uwonet.or.ug Uganda Youth Network (UYONET) Web: www.info.or.ug Volunteer Efforts for Development Concerns (VEDCO) Website: www.vedcouganda.org Water Aid Uganda Website: www.wateraid.org/uganda Wagwoke WUnu District: Agago Women and Girl Child Development Association Website: www.wegcda.org Widows and Orphans Support Organisation District: Agag 5 Forum for Women in Democracy (FOWODE) Website: (www.fowode.org) Forum for Kalongo Parish Women Association District: Agago FOWODE Young Leaders Alumni Association (FYLAA) Website: www.fylaa.org Hope after Rape Website: www.har.interconnection.org Hunger Fighters Uganda Website: www.hungerfightersuganda.org Human Rights Network Uganda (HURINET- U) Website: www.hurinet.or.ug Initiative for Social and Economic Rights - Uganda Website: www.iser-uganda.org Institute of social transformation (IST) Website: www.ist-tft.org Innovations for poverty action (IPA) website: www.poverty-action.org Isis-WICCE Website: www.isis.or.ug Jenga Afrika Website: www.jengaafrika.org Muti Community Based Development Initiative District: Abim National Association of Women Organisations in Uganda (NAWOU) Website: www.nawouganda.org National Forum for People Living with HIV/AIDS Network in Uganda (NAFOPHANU) Website: www.nafophanu.org National Union of Women with Disabilities of Uganda (NUWODU) National Union of Disabled Persons Uganda (NUDIPU) www: www.nudipu.org Nen Anyim Community Based Group District: Agago Participatory Ecological Land Use Management (PELUM) Website: www.pelumuganda.org Patongo Counseling Community Outreach District: Agago Passion for community development organization District: Agago People Living with HIV/AIDS Network District: Abim Platform for Citizen Participation and Accountability (PLACA) Website: www.placaug.org Page Website: www.actvuganda.org Advance Afrika Advocates Coalition for Development and Environment (ACODE) Website: www.acode-u.org Anti-Corruption Coalition Uganda (ACCU) www.accu.or.ug Agago NGO Forum District: Agago Action Group for Health Human Rights and HIV/AIDS (AGHA) Website: www.agha.or.ug African Youth Development Link (AYDL) Website: www.aydl.org African Women's Economic Policy Network (AWEPON) Website: www.awepon.net Ashay Razyn foundation limited Web: www.arfuganda.org Awotid – Uganda District: Abim Caritas Kampala Website: www.caritaskampala.org Center for African Policy Website: Center for Domestic Violence (CEDOVIP) Website www.preventgbvafrica.org Center for Governance, Peace and Security Website: www.gasuganda.com Center for Policy Research and Development Initiatives Website: www.cepordi.org Centre for Women in Governance (CEWIGO) Website: www.cewigo.org Community Restoration Imitative Project Website: Development Network of Indigenous Voluntary Associations (DENIVA) Website: www.deniva.or.ug Development Research and Training (DRT) Website: www.drt-ug.org Development Watch( DEMWatch) Deutsche Stiftung WeltbevölkerungUganda Website: www.dsw-online.org Eastern and Southern Africa Small Scale Farmers Forum (ESAFFUganda) Website: www.esaff.org Environmental Alert (EA) Website: www.envalert.org Food Rights Alliance (FRA) Web: www.fra.ug For More Information, Please Contact: Mukunda Julius Coordinator Civil Society Budget Advocacy Group (CSBAG) P O BOX 660, Kampala Uganda Tel: + (256) 041 4 286063 Email: [email protected] | Web: www.csbag.org Nalunga Jane Country Director SEATINI -Uganda P.O.BOX 3138 Kira Rd, Kampala, Email: [email protected] Web: www.seatiniuganda.org 6