Professional Documents
Culture Documents
2.0. INTRODUCTION
Mobilizing domestic revenues for the provision of public goods and
services through taxation helps to reduce dependence on loans and
foreign aid thus strengthening the legitimacy of the state and
deepen the social contract between governments and their
citizenry.The Government of Uganda has over the years made
enormous reforms in its fiscal management framework. Numerous
measures are rolled out by Government in order that sufficient
domestic revenues maybe generated to finance service delivery and
other development prospects.
Civil Society Organizations recognizes the need to have efficient
resource mobilization mechanisms that promote value for money as
well as generation of adequate resources to support service
delivery.
Members of Civil Society Budget Advocacy Group (CSBAG)
encourage a closer working with Government in particular Ministry
of Finance Planning and Economic Development to ensure that we
have equitable budgets with adequate resources to fund them.
There is however need for the two side to be on the same page on
issues particularly those that relate to resource mobilization and
therefore have present some questions that require your response
2.0. QUESTIONS ON TAX POLICY
2.1. Local Service Tax
Revise rates and exemptions of Local Service Tax
After the abolishment of graduated tax in 2006, Local Service Tax
(LST) was introduced in 2008 to offset the revenue previously
collected in the former. However, over the years, the revenue
generated through LST has not reached the expected targets. Its
contribution has averaged between UGX4.8billion and UGX
10.5billion in FYs 2008/9 and 2009/10, respectively far below the
targeted ushs67billion1. This has been as a result to its not being
all inclusive for instance the exemptions given to certain sections of
society like prisons, police, boda boda, judges and the army
Question
even on new cars and this, compounded with the already high price
of new vehicles, has continued to make new vehicles more
expensive compared to used ones. Although this action has hiked
the price of used vehicles beyond their real value, it has not
discouraged the buying of used vehicles.
Questions
1. Could Government explain the justification of the shift from a
20% to 50% environmental levy in its present state of affairs?
2. Why cant the tax regime promote acquisition of new
automobiles as both a sustainable transport facilitation
measure and environmental protection?
4.2.Tax Exemptions and Incentives
Ugandans have been concerned about tax
exemptions that are not beneficial to the economy.
incentives
and
Question
1. What is the status/Value for exemptions and incentives
so far for FY2015/16?
2. Can CSOs benefit from details of investments are
benefiting from such
5.1. Introduction
Uganda like other Sub-Saharan countries was not spared by the
debt crisis in 1980s through the 1990s. The country suffered
dramatic decline in export receipts due to falling coffee prices and
unfavorable terms of trade and high level of donor financed
development expenditure; leading to default on debt repayment 3.
This led Multi-lateral institutions i.e. the World Bank/IMF in the late
1990s and early 2000s to offer debt relief and restructuring as a
result of lobbying from local and international Civil Society groups;
which freed up resources for allocation towards poverty
3
Ochieng J. B. etal. 2014. External Debt and Economic Growth in the East
African Community. African Journal of Business Management. Pg. 1
A sizeable domestic revenue is a necessary buffer for enhanced fiscal space and
better income distribution
http://www.bbc.com/news/business-35245133
http://mobile.monitor.co.ug/Business/URA-records-biggest-revenue-shortfall-indecade/-/1055106/2571464/-/format/xhtml/-/11g9xen/-/index.html
9
http://www.monitor.co.ug/Business/Prosper/2013-14-budget-preview--Ugandansto-face-tough-financial-year/-/688616/1851124/-/kgyl1k/-/index.html
*********************************END********************************