PRESS STATEMENT-FOR IMMEDIATE RELEASE
CIVIL SOCIETY POSITION ON TAX REVENUE MEASURES FOR FY 105/16
From Left, Julius Mukunda, CSBAG Coordinator, Julius Kapwepwe CSBAG Member, Nelly
Busingye, CSBAG Member, and Henry Bazira,CSBAG Member at a Press Conference at
SEATINI Uganda Offices on 26th April 2015
Released at a Press Conference held at SEATINI Uganda offices on 26th April 2015
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Southern and Eastern African Information and Negotiations Institute
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Introduction
We the members of Civil Society Organizations Including Civil Society Budget Advocacy Group
(CSBAG), SEATINI1 Uganda, ActionAid Uganda (AAIU), Uganda Debt Network (UDN), Development
Initiatives (DI), Water Governance Institute (WGI) that are gathered here at SEATINI Uganda offices
in Kampala this 26t April 2015 hereby present our observations and recommendations in respect to
the tax revenue measures for the FY 2015/16 that were presented to Parliament on 1st April 2015,
by Hon Matia Kasaija the Minister of Finance Planning and Economic Development. The Minister’s
proposals covered the Finance Bill 2015, Excise Duty (Amendment) Bill 2015, Value Added Tax
(Amendment) Bill 2015, the Income Tax (Amendment) Bill 2015 and Business Licenses Bill 2015.
POSITIVE TAX PROPOSALS
We welcome the following proposals to improve revenue collection in the FY 2015/16 and beyond
including;
1. 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
2. Impose excise duty on motor vehicle lubricants at 5% - expected to realise UGX 4bn
3. Increase of excise duty on non-premium beers from 20% to 30%. – expected to realise 35bn
4. 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/= - expected to realise 10bn
5. Including of Withholding Tax at 6% on income of suppliers of agricultural produce - expected to
realise 10bn
6. Imposing Value Addition Tax on discounts - expected to realise 48bn
7. Zero-rate on the supply of cereals where they are grown, milled or produced in Uganda.
CSO CONCERNS ON SELECTED TAX PROPOSALS
We however, have concerns on the following proposals upon which we make the following
observations and recommendations;
1.0 Tax Revenue Measures under the Excise Duty (Amendment) Bill 2015
1.1
Increase excise duty on Petrol and diesel from Shs.950 to Shs.1, 000 and Shs.630 to Shs.680
per litre respectively.
Suppliers have a tendency of increasing the pump price regardless of how much the increment in tax
is, given Government’s reluctance to regulate the sector. We recommend that Government should
regulate fuel companies to prevent disproportionate increases in fuel pump prices because
ultimately it increases the cost of doing business.
We
Impose Annual operator license fees in respect of vehicles and vessels
commend
Government
for
the
proposal to levy operator license fee on boda
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2.2
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2.0 Tax Revenue Measures under the Finance Bill 2015
2.1
Passport Fees: The proposed charge (UGX 150,000) for an ordinary passport is prohibitive.
We further observe that whereas the time for obtaining an Express passport has been stipulated, the
rest of the categories have not been accorded the same. We again observe that there are no express
remedies available to citizens in the event of failure to honour the stated timelines for issuance of the
passport. We recommend that:
 The charge for an ordinary passport be maintained at its current rate (UGX 120,000)
 The charge for diplomatic/official passport is increased to UGX 300,000 to reflect the
diplomatic stature.
 Timelines be specified for all classes of passports and further propose that Government
clearly provides for appropriate remedies upon failure to honor the terms for issuance of a
passport.
bodas. We however recommend that the fee be increased from the proposed UGX 30,000 to UGX
200,000 annually. This will help streamline boda boda services in the country.
3.0
Tax Revenue Measures under the VAT (amendment) Bill 2015
3.1
Amendment of section 24 and 25 of principal Act: This proposal is risky and likely to be abused
by the mining companies, and sets a precedent for other sectors to demand for similar
preferential treatment. It is also a veiled exemption that can lead to revenue loss. We
recommend that VAT principles should not be applied selectively.
4.0 The Business Licenses (Miscellaneous repeals) Bill, 2015
We observe that there are various fees stipulated under various laws and it’s necessary to eliminate
their multiplicity and overlap to achieve efficiency, transparency and competitive business
environment. The cooperative societies Act and the investment code are such important laws whose
reforms need to be comprehensive through stake holder engagement. We recommend that;
 The Cooperatives act and the Investment code should be dealt with separate from the other
laws that relate to licensing.
 We
further recommend that repeal of laws be made to the extent they relate to
harmonization and streamlining of licensing fees particularly Section 9 Rivers Act, Cap.357,
3and 4 of the Hides and Skins (Export Duty) Act, Cap.339, Liquor Act, Cap.93, Industrial
Licensing Act, Cap.97,section 11(2) and (3) of the Fish Act, 10(6).
Linking taxes and fees to service delivery and tax payer education. Citizens should be
sensitized by URA, Local Government Finance Commission and other stakeholders on the
revenue sources, their perceived roles, reasons why it is important to pay taxes and linkage
between the tax payments and expected service provision. Government should also strengthen
transparency, accountability and feedback measures at all levels to curb tax leakages and
evasion
5.2
Local Government tax administration; we recommend that in a bid to enhance the revenue
base at the local government, the revenue enhancement procedures should be enforced by the
revenue enhancement committees. Furthermore, we recommend that Local governments do
request for Individual Tax identification numbers linked to everyone’s utility service beginning
with urban local governments. This will improve tax returns and compliance
5.3
Revenue Collection data bases; to improve the collections, local governments should invest in
establishing, refining and updating revenue data bases in all districts. Government should
invest training the local government revenue officers and establish revenue enhancement
departments.
5.4
Revise rates and exemptions of Local Service Tax. The Local Service Tax should be revised
to include all eligible tax payers in gainful employment including the exempted ones.
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5.0 OTHER TAX POLICY ISSUES
5.5
Invest in key productive sectors like Agriculture, Trade – given their forward and backward
linkages in providing revenue and accelerating poverty reduction.
5.5
Reforming Non Tax Revenues – Government should initiate reforms aimed at enhancing NTR
with a view to revising the respective rates upwards to match the current economic
circumstances.
6.0 ALTERNATIVE TAX PROPOSALS
6.1 Property tax/ Ground Rent and rental income tax on commercial buildings should be well
enforced and regulated;
We recommend that;
 Government should carry out an assessment of various properties to determine the owners of
commercial building and rental houses/apartments.
 Uganda Revenue Authority and other local government agencies should strengthen enforcement
mechanisms to collect the taxes
 Ground rent stamp duty should be strictly assessed and paid. And therefore URA should be key
and influential in such enforcement
6.2 Curb Illicit Financial Flows ;
We recommend that;
 Government should strengthen the capacity of Uganda Revenue Authority to curb illicit financial
flows.
 Government should fully implement the Money Laundering Act to curb illicit financial flows.
 The government of Uganda should establish a mechanism of implementing the recommendations
from the High level Mbeki Panel Report that was adopted by African Union in January 2015.
6.2 Taxation on currency conversions Observation; As an international practice, Government
could impose a 0.5% tax on all currency conversions
Conclusion
As Civil Society Organisations, we call upon Government and other stakeholders to put into
consideration the above observations and recommendations. Together for an improved tax regime,
gender responsive and equitable national development.
FOR GOD AND OUR COUNTRY
ABICWA
District: Abim
African Centre for Trade and
Development (ACTADE)
Website: www.actade.org
African Centre for Treatment and
Rehabilitation of Torture Victims
(ACTV)
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Action Aid International Uganda
| (AA - IU)
Website:
www.actionaid.org/Uganda
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We the undersigned:
The Civil Society Budget Advocacy Group (CSBAG) since its launch in 2004 has made major leaps towards
Ensuring that the Ugandan budget making process is more participatory, transparent and citizens’ concerns
are prioritized in government budget allocations and implementation. Our membership is comprised of the
following 72 institutions:
Regional Associates for Community
Initiatives (RACI)
Website: www.raciug.org
Spinal Injuries Association- Uganda
District: Kampala
Shelter and Settlements
Alternatives-Uganda
Website: www.ssauganda.org
Southern and Eastern African Trade
Information and Negotiations
Institute (SEATINI-U)
Website: www.seatiniuganda.org
Real Agency for Community
Development
Website: www.racd-uganda.org
Rwenzori Consortium for Civil
competence (RWECO)
Website: www.rweco.org
Toro Development Network-ToroDev
Website: www.torodev.kabissa.org
Uganda Debt Network (UDN)
Website: www.udn.or.ug
Uganda National Health
Consumers’ Organization (UNHCO)
Web: www.unhco.or.ug
Uganda National NGO Forum.
Website: www.ngoforum.or.ug
Uganda Network of AIDS Service
Organization (UNASO)
Website: www.unaso.org
Uganda Parliamentary Forum on
Youth Affairs
Website:
Uganda Road Sector Support
Initiative (URSSI)
Website: www.ugandaroadsector.org
Uganda Women Entrepreneurs
Association Limited
Web: www.uweal.co.ug
Uganda Joint Christian Council
(UJCC)
www.ujcc.co.ug
Uganda Women’s Network
(UWONET)
Website: www.uwonet.or.ug
Uganda Youth Network (UYONET)
Web: www.info.or.ug
Volunteer Efforts for Development
Concerns (VEDCO)
Website: www.vedcouganda.org
Water Aid Uganda
Website: www.wateraid.org/uganda
Wagwoke WUnu
District: Agago
Women and Girl Child Development
Association
Website: www.wegcda.org
Widows and Orphans Support
Organisation
District: Agag
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Forum for
Women in Democracy (FOWODE)
Website: (www.fowode.org)
Forum for Kalongo Parish Women
Association
District: Agago
FOWODE Young Leaders Alumni
Association (FYLAA)
Website: www.fylaa.org
Hope after Rape
Website:
www.har.interconnection.org
Hunger Fighters Uganda
Website:
www.hungerfightersuganda.org
Human Rights Network Uganda
(HURINET- U)
Website: www.hurinet.or.ug
Initiative for Social and Economic
Rights - Uganda
Website: www.iser-uganda.org
Institute of social transformation
(IST)
Website: www.ist-tft.org
Innovations for poverty action (IPA)
website: www.poverty-action.org
Isis-WICCE
Website: www.isis.or.ug
Jenga Afrika
Website: www.jengaafrika.org
Muti Community Based
Development Initiative
District: Abim
National Association of Women
Organisations in Uganda (NAWOU)
Website: www.nawouganda.org
National Forum for People Living
with HIV/AIDS Network in Uganda
(NAFOPHANU)
Website: www.nafophanu.org
National Union of Women with
Disabilities of Uganda (NUWODU)
National Union of Disabled Persons
Uganda (NUDIPU)
www: www.nudipu.org
Nen Anyim Community Based
Group
District: Agago
Participatory Ecological Land Use
Management (PELUM)
Website: www.pelumuganda.org
Patongo Counseling Community
Outreach
District: Agago
Passion for community development
organization
District: Agago
People Living with HIV/AIDS
Network
District: Abim
Platform for Citizen Participation
and Accountability (PLACA)
Website: www.placaug.org
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Website: www.actvuganda.org
Advance Afrika
Advocates Coalition for
Development and Environment
(ACODE)
Website: www.acode-u.org
Anti-Corruption Coalition Uganda
(ACCU)
www.accu.or.ug
Agago NGO Forum
District: Agago
Action Group for Health Human
Rights and HIV/AIDS (AGHA)
Website: www.agha.or.ug
African Youth Development Link
(AYDL)
Website: www.aydl.org
African Women's Economic Policy
Network (AWEPON)
Website: www.awepon.net
Ashay Razyn foundation limited
Web: www.arfuganda.org
Awotid – Uganda
District: Abim
Caritas Kampala
Website: www.caritaskampala.org
Center for African Policy
Website:
Center for Domestic Violence
(CEDOVIP)
Website www.preventgbvafrica.org
Center for Governance, Peace and
Security
Website: www.gasuganda.com
Center for Policy Research and
Development Initiatives
Website: www.cepordi.org
Centre for Women in Governance
(CEWIGO)
Website: www.cewigo.org
Community Restoration Imitative
Project
Website:
Development Network of Indigenous
Voluntary Associations (DENIVA)
Website: www.deniva.or.ug
Development Research and Training
(DRT)
Website: www.drt-ug.org
Development Watch( DEMWatch)
Deutsche Stiftung WeltbevölkerungUganda
Website: www.dsw-online.org
Eastern and Southern Africa Small
Scale Farmers Forum (ESAFFUganda)
Website: www.esaff.org
Environmental Alert (EA)
Website: www.envalert.org
Food Rights Alliance (FRA)
Web: www.fra.ug
For More Information, Please Contact:
Mukunda Julius
Coordinator
Civil Society Budget Advocacy Group (CSBAG)
P O BOX 660, Kampala Uganda
Tel: + (256) 041 4 286063
Email: [email protected] |
Web: www.csbag.org
Nalunga Jane
Country Director
SEATINI -Uganda
P.O.BOX 3138 Kira Rd, Kampala,
Email: [email protected]
Web: www.seatiniuganda.org
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