18 April 2024 Economists attribute the heavy and increased tax burden that Ugandans face to failure by government to slash its expenditure, reduce borrowing and failure to improve efficiency in delivering services to Ugandans. This after government proposed a raft of new taxes on key products like fuel and building materials in the 2024/25 financial year, bringing about fears of increase in the cost of living. It also comes at a time the traders have closed their shops protesting heavy taxes among other concerns. The Executive Director Federation of Small & Medium Enterprises also an economist John Walugembe says government has resorted to heavily taxing Ugandans to maintain its lavish spending. Speaking during during a roundtable meeting on unlocking financing for growth oriented & Sustainable SMEs at Hotel Africana, Walugembe notes that government should take the lead in exercising frugality. Story by Wycliffe Sebunya
18 April 2024 Government fails to convince traders to call off their strike as they insist on meeting President Museveni this week Friday. The Traders want the VAT threshold increased from 150 million shillings to 1 billion shillings and that the VAT rate be reduced from 18% to 16%. The traders expressed concerns about the implementation of the Electronic Fiscal Receipting and Invoicing System and the costs involved suggesting it should be suspended and more focus put on sensitizing the traders. The traders also want their concerns about heavy taxes on imported garments and the involvement of investors, manufacturers and foreigners in wholesale & retail trade be addressed. State minister of Kampala Kabuye Kyofatogabye together with a team from state house and RCCs met the traders at Fairway hotel in Kampala today with an aim of convincing them to reopen their shops that have been closed since Tuesday. According to minister Kyofatogabye the president has agreed to meet the traders on Friday at state house Entebbe. He however said that the issue of penalties is already resolved as traders are now free to collect their goods from the customs parking at no cost. Story by Eva Namugabi
18 April 2024 Parliament has repealed the Uganda Export Promotions Act and passed the Free Zones amendment Bill, 2024 to merge two entities as part of the wider rationalization and merger of Government departments. Export Promotions Board and Uganda Free Zones Authority will now be merged into one entity called ‘the Uganda Free Zones and Export Promotions Authority. The Committee on Trade, industry and cooperatives says that that 16 staff of Uganda Free Zones Authority will be laid off, and this would attract a cost of 900 million shillings as one-off payment as their terminal benefits next financial year The state minister in charge of industry David Bahati justified the merger. The House has also passed the Warehouse Receipt System amendment Bill to mainstream the functions of the Uganda Warehouse Receipt System Authority into the Ministry of Trade which will save 12.4 billion shillings.. The House has also passed the Uganda Wildlife amendment bill and also repealed the Uganda Wildlife Conservation Education Centre thereby paving way for their merger. According to the report of the committee Government will incur a one-off cost of 1.3 billion shillings as terminal benefits to be paid to staff during the merger and save up to 15.1billion shillings. The leader of opposition Joel Ssenyonyi has advised the executive to ensure that the rationalization process adds value to delivery of service. Story by Kenneth Lukwago
18 April 2024 Economists attribute the heavy and increased tax burden that Ugandans face to failure by government to slash its expenditure, reduce borrowing and failure to improve efficiency in delivering services to Ugandans. This after government proposed a raft of new taxes on key products like fuel and building materials in the 2024/25 financial year, bringing about fears of increase in the cost of living. It also comes at a time the traders have closed their shops protesting heavy taxes among other concerns. The Executive Director Federation of Small & Medium Enterprises also an economist John Walugembe says government has resorted to heavily taxing Ugandans to maintain its lavish spending. Speaking during during a roundtable meeting on unlocking financing for growth oriented & Sustainable SMEs at Hotel Africana, Walugembe notes that government should take the lead in exercising frugality. Story by Wycliffe Sebunya
18 April 2024 Government fails to convince traders to call off their strike as they insist on meeting President Museveni this week Friday. The Traders want the VAT threshold increased from 150 million shillings to 1 billion shillings and that the VAT rate be reduced from 18% to 16%. The traders expressed concerns about the implementation of the Electronic Fiscal Receipting and Invoicing System and the costs involved suggesting it should be suspended and more focus put on sensitizing the traders. The traders also want their concerns about heavy taxes on imported garments and the involvement of investors, manufacturers and foreigners in wholesale & retail trade be addressed. State minister of Kampala Kabuye Kyofatogabye together with a team from state house and RCCs met the traders at Fairway hotel in Kampala today with an aim of convincing them to reopen their shops that have been closed since Tuesday. According to minister Kyofatogabye the president has agreed to meet the traders on Friday at state house Entebbe. He however said that the issue of penalties is already resolved as traders are now free to collect their goods from the customs parking at no cost. Story by Eva Namugabi
18 April 2024 Parliament has repealed the Uganda Export Promotions Act and passed the Free Zones amendment Bill, 2024 to merge two entities as part of the wider rationalization and merger of Government departments. Export Promotions Board and Uganda Free Zones Authority will now be merged into one entity called ‘the Uganda Free Zones and Export Promotions Authority. The Committee on Trade, industry and cooperatives says that that 16 staff of Uganda Free Zones Authority will be laid off, and this would attract a cost of 900 million shillings as one-off payment as their terminal benefits next financial year The state minister in charge of industry David Bahati justified the merger. The House has also passed the Warehouse Receipt System amendment Bill to mainstream the functions of the Uganda Warehouse Receipt System Authority into the Ministry of Trade which will save 12.4 billion shillings.. The House has also passed the Uganda Wildlife amendment bill and also repealed the Uganda Wildlife Conservation Education Centre thereby paving way for their merger. According to the report of the committee Government will incur a one-off cost of 1.3 billion shillings as terminal benefits to be paid to staff during the merger and save up to 15.1billion shillings. The leader of opposition Joel Ssenyonyi has advised the executive to ensure that the rationalization process adds value to delivery of service. Story by Kenneth Lukwago
