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 | @CSBAGUGANDA CSBAG/Facebook.com