Uganda needs fiscal accountability

PAY First: Maria Kiwanuka, Uganda’s Finance Minister.

KAMPALA, Uganda - Ugandans have been told to demand much more accountability from the government as it raises taxes across the board to bridge a budget deficit.

“We should be critically asking government to account for the taxes. We need to know how government is going to spend these revenues,” Samuel Sejjaaka, an economist said recently during a budget analysis seminar organized by Deloitte in Kampala.

Finance minister, Maria Kiwanuka, speaking after presentations from several economists, asked Ugandans to pay their due taxes and later demand for accountability. She said this is better than not paying and not caring to know what the government does with the money.

The 2014/15 budget partly targeted reduction of government expenditure by almost 40% through cutting expenses on workshops and similar expenses. many people some of whom advised that government invests this money in key infrastructure like roads and better services.

On the introduction of new taxes and removal of incentives like termination of exemption on income derived by a person running a private school to generate about Ush15 billion (over $5 million), Kiwanuka said it was not about broadening the tax base but ensuring that taxes that are due are paid.

“We are not taxing private schools; we are taxing their profits after they have removed their operational costs. Then why not pay taxes for the roads that bring students to your school, the water you use and electricity,” Kiwanuka said.

Responding to removal of incentives in the agriculture sector, a prominent businessman, Patrick Bitature said there is need for farmers to upgrade to commercial farming. “Taxing farmers in their state is bad but they should be made to know that they need to grow as farmers.” He said recommending that farmers should stop using hoes and start to use tractors.

By Baz Waiswa, Saturday, June 21st, 2014


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