csbag budget news brief - Civil Society Budget Advocacy Group

Transcription

csbag budget news brief - Civil Society Budget Advocacy Group
CSBAG BUDGET NEWS BRIEF
96th EDITION | 6th -12th April 2015
...advocating for a people centered budget that dignifies humanity
CSOs suggest alternative tax proposals for FY 2015/16
“Civil Society Organizations
today held a press conference
to discuss the key CSO tax
proposals for the financial year
FY 2015/16
Civil society organisations have backed proposals
by the government to increase taxes on beers,
motor vehicle lubricants, and scrapping the excise
duty of Shs 0.09 per minute on incoming calls
from Kenya,Rwanda and South Sudan.
They however want the fee for a diplomatic
passport increased from Shs Shs120, 000 to
Shs300, 000. Tax proposals contained in the
Finance Bill, 2015 indicate that the fee for
diplomatic passports to be increased to Shs
150,000.
“For a diplomat to pay the same fee as an
ordinary citizen is being unfair,” Mr. Julius
Mukunda, the coordinator of Civil Society Budget
Advocacy Group (CSBAG) said. “By the time you
become a diplomat you have moved from a
particular income bracket level to another level,”
he said.
Mr.Mukunda made remarks during a joint press
conference with other organisations among them
SEATINI, Uganda Debt Network and Water
Governance Institute to share the civil society
position on the tax proposals for the financial
year 2015/16. This press conference took place on
Sunday 26th April 2015 in Kampala.
Under the proposed imposition of Annual
operator license fees in respect to vehicles and
vessels, CSOs recommended that the fee on boda
bodas be increased from the proposed UGX
50,000 to UGX 200,000 annually.
Ms. Nelly Busingye Mugisha a program officer with
SEATINI argued that whereas government is
proposing to increase this fee to 50,000, this
increment is insignificant and it should instead be
Ush 200,000. “With the current fee of 30,000 on
average a boda boda pays 1,500 per month and
yet they are exempted from other taxes like Local
Service Tax” Nelly Said.
Mr. Henry Bazira the Executive Director of Water
Governance Institute explained that the money
could be ring-fenced to cater for the expansion of
the road network and used for compensating for
the boda-boda accident victims in terms of
treatment in the hospitals “The raised boda-boda
fee is not punitive tax but for a compensation for
victims of especially boda boda accidents. Bazira
said.
The activists also urged the government to
consider reintroducing graduated tax- an old form
of direct taxation imposed on adults that was
abolished in 2004 amid pressure that it was
primitive.
Left, Julius Mukunda, CSBAG Coordinator, Program Director of Uganda Debt Network, Nelly Busingye, Program Officer- SEATINI and Henry Bazira,
th
Executive Director Water Governance Institute during the Press Conference at SEATINI Uganda Offices on 26 April 2015. |© CSBAG 2015
Mr. Julius Kapwepwe, the Director of Programs at
Uganda Debt Network argued that the abolition of
graduated tax has left Local Governments in dire straits
as alternative sources of funding proposed as
replacements for the tax hare failing to yield the much
needed revenue.
“The equalization grant has been too low .The Local
Service Tax was proposed but while it was expected to
raise about Shs50b, it has ended up raising between Shs
5-7bn.Such a huge gap in financing needs to be
compensated with a graduated tax,”Mr Kapwepwe said.
Mr. Kapwepwe further explained the abolition of
graduated tax detached citizens from contributing to
the country‟s development-effectively making people
adopt a laid-back approach towards demanding for
accountability. Such apathy is exploited by officials to
steal taxpayers‟ money. Kapwepwe argued
“By people not paying taxes, they are being de-linked
from their own development. Once they there is a paid
contribution to their own development, it increases
local vigilance in their own community to go and
demand for accountability,” Mr. Kapwepwe explained
Mr. Julius Mukunda argued that the improvement in tax
collection methods means that Graduated tax will not
be as coercive as it was when it was infamous for the
brutal methods government agents used in collecting
the tax. “Graduated tax is very progressive tax. You pay
according to what you earn and what you are able to
afford. That is the contribution we as citizens have to
make to our own development,”Mr. Mukunda said.
Other issues of concern raised by civil society
organisations include the need for government to
improve on database for revenue collection by updating
databases in all districts and linking taxes to service
delivery.
CSOs welcomed the proposal to increase excise duty on
Petrol and Diesel by Ushs. 50 respectively but urged
Government to improve on its regulation so it
corresponds with the fuel prices charged because fuel
prices is one the major factors influencing inflation in
our economy thereby hindering production.
“Government often states that these increments are
insignificant and will not translate into higher pump
prices and we see little effort from government to
regulate the fuel companies from increasing pump
prices. “ Nelly said
CSOs commended Government‟s proposals of including
6 % Withholding Tax on income of suppliers of
agricultural produce where government is expected to
realise 10bn as well as the Zero-rate on the supply of
cereals where they are grown, milled or produced in
Uganda.
“Taxation is the price we pay for civilization”, Mukunda
said. Citizens should pay taxes and demand
accountability from government thus ensuring that
revenue collected is not misused by government
officials. It‟s more sustainable if citizens paid taxes to
finance our own development than relying on debt.”
stated the Julius Mukunda. He implored government to
ensure that revenue collected is not misused by
government officials. “
These
proposals come as Parliament‟s sessional
committees sift through the National Budget
Framework Paper (NBFP) and different Ministerial Policy
Statements for the 2015/16 financial year-a process that
will end with the Budget Committee presenting a report
on April 30.
From 4th-15th May 2015, committees that have been
handling the budget are scheduled to present their
reports to Parliament-with the budget cycle ending with
Finance Minister Matia Kasaijja‟s Budget Speech reading
in June.
The CSO Proposals will be tabled before the Parliament
Committee on Finance on Tuesday 28th April 2015 in
Parliament.
Produced by the Civil Society Budget Advocacy Group (CSBAG).
Plot 11, Vubya close, Ntinda Nawaka Stretcher Road| P.O BOX 660, Ntinda Fixed line +256 755202154 |website: www.csbag.org, Email: [email protected]
This week on
#UGbudget 15
We welcome the following proposals to improve revenue
collection in the FY 2015/16 and beyond- These include;
Tax Proposal
What Gov’t expect
to Generate
1. Impose excise duty on motor
vehicle lubricants at 5%
2. Increase of excise duty on nonpremium beers from 20% to 30%.
3. 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/=
4. Including of Withholding Tax at
6% on income of suppliers of
agricultural produce 5. Imposing Value Addition Tax on
discounts
6. Zero-rate on the supply of cereals
where they are grown, milled or
produced in Uganda.
7. 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
UGX 4bn
UGX 35bn
UGX 10bn
UGX 10bn
UGX 48bn
Budget news that made headlines in the media
Civil society wants budget funds to reach grassroots
“Members of the civil society have asked government to ensure that a large portion of the funds
it allocates through the national budget reaches the grass root communities where agriculture
and other productive activities take place.” Read more >>>
Civil
society organisations want graduated tax back
Civil society asks parliament to increase health budget
Government
should
painstakingly re-introduce the graduated tax,” read the CSBAG report released last week,
Publish
Date: Apr
16, 2015
containing its budget proposals for the next financial year 2015/16. According to CSBAG coordinator, Julius
Mukunda, who presented the report titled; „Every Shilling Counts,‟ graduated tax will instill a sense of purpose
among mainly the youth whose focus and attention seems detached from realities on the ground. Read more
“Basing
>>> on the analysis of the 2015/2016 budget framework paper/draft budget and the ministry of health ministerial policy
statement, CSBAG observed with regret that the recurrent/administrative budget for the sector is increasing while the development is
declining.”
Gov’t rejects calls to reintroduce Graduated Tax
A decade after its abolition, minister of local government, has knocked back calls for government to reconsider
Civil society asks parliament to increase health budget
its decision to scrap graduated tax, saying the levy is "permanently" consigned to the archives of history.
President Yoweri Museveni abolished Graduated Tax during his 2005 presidential campaigns, arguing that the tax
was a colonial relic characterized by humiliation in its enforcement, besides being expensive to collect. Read
more >>>
Shs34b aid to Uganda remains frozen over doctors
Published 22 April 2015
export deal
Civil society organisations wants graduated tax back
nd
Belgium deputy
Minister
Alexander
Croo has
said
€uroreleased
11 million
(about
shs34 billion)
aid
Government
shouldPrime
painstakingly
re-introduce
theDe
graduated
tax,”
readhis
thecountry‟s
CSBAG report
last week,
containing
its budget
to
Uganda
remains
frozen
as
a
sign
of
discontent
over
government
adamancy
to
export
at
least
263
medical
proposals for the next financial year 2015/16. According to CSBAG coordinator, Julius Mukunda, who presented the report titled;
specialists,
per cent
from public
hospitals,
toofthe
Caribbean
of Trinidad
andfocus
Tobago.
Read more
‘Every Shilling90
Counts,’
graduated
tax will instill
a sense
purpose
among island
mainly the
youth whose
and attention
seems>>>
detached from realities on the ground.
Middle class: myth or reality?
Civil society organisations wants graduated tax back - Business - monitor.co.ug
Experts divided on middle class status and who qualifies to be in that group. Barely in his mid-30s, Allan is the
proprietor a high-end boutique at Garden City that deals in the latest outfits. The majority of his clients are
„corporates‟ who can afford to buy an average shirt at Shs 400,000 or a suit Shs 6 million. Indeed, his shop
attracts Kampala‟s top elite with high-paying jobs – or what he describes as the „middle class.‟ Read more >>>
Civil Society Budget Advocacy Group (CSBAG)
P.O. Box 660, Ntinda| Plot 15 Vubya Close, Ntinda Nakawa Rd | Fixed Line: +256-41-286063 | Mob: +256-755-202-154
| E-mail: [email protected] |Web www.csbag.org |
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