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BUDGET: Museveni unhappy with low tax collections

 

The new URA headquarters. PHOTO PPU

Budget 2021 summary

✳ Resource envelope Sh45.5 trillion
✳ Revenue Sh21.8 trillion
✳ Uganda GDP Sh138 trillion
✳ Uganda GDP rate +3.1%
✳ Electricity output 1254MW
✳ Paved roads 5600km
✳ National IT backbone, 49 districts
✳ Internet bandwidth $70/Mbps
✳ UDB sh1 trillion injection
✳ Domestic arrears pay 673bn
✳ VAT refund 120bn
✳ Waive tax interest 50bn
✳ UDC 138bn injection
✳ SACCOs 94bn fund
✳ Postpone PAYE 65bn
✳ NAADS e-voucher 300bn
✳ Assistance to >80yr olds, 107bn
✳ Covid vulnerable 130bn

Kampala, Uganda | THE INDEPENDENT | President Yoweri Museveni has decried low tax collections in Uganda, which he says are very low compared to other countries in the region.

“Uganda has the lowest tax to GDP ratio. It’s 14.3% . Some African countries go up to 18-20%. In Europe up to 40%. So what’s the problem? There’s been a lot of corruption at URA,” Museveni said, in his remarks after Minister Matia Kasaija and presented his 2020-2021 budget estimates.

Museveni said there were many opportunities to raise revenue in the country, citing rentals as an example.

“About rentals; this is cheating; someone who has over 40 units and is claiming that he is building new ones. We are saying that pay tax for the houses. That is why we have very low tax collection.,” he said.

Museveni hit out at URA after the budget speech

Museveni explained that the country is paying a lot of money in interest because government is borrowing, which can be halted if more tax is collected.

“There is a lot of collusion and people who are not paying taxes. This is corruption. There has been a lot of corruption in the URA but I have thoroughly cleaned it. We have dispersed the URA crowd. We shall clean all other institutions that have corrupt people.”

 

FULL Uganda Budget-speech 2020-2021 by The Independent Magazine on Scribd

 

 

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