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Gov't proposes Shs 100 tax increment on fuel

Government has proposed a Shs 100 tax increment on fuel in FY 2018/19 with the aim of raising Shs 202 billion for road maintenance.

"In the roads and works sector, government will scale down on new projects and shift focus to road maintenance. Shs 100 tax will be imposed on fuel to raise about Shs 202 billion annually for road maintenance", reads part of the 2018/2019 financial year budget frame work paper.

The Shs 100 tax increment on fuel is one of the proposed reforms by government mentioned in the frame work paper with the aim of addressing the current budget implementation and governance challenges.

Motorists will have to pay for fuel if government goes ahead to impose an additional Shs 100 on fuel

Finance state minister, David Bahati tabled the budget framework before parliament last week. The paper lists new policy and administrative measures, which government intends to undertake in the next financial year. They include among others halting of the creation of new agencies, administrative units and public universities.

"Freezing the creation of new units is necessary for government to create financial space to accommodate implementation of a comprehensive pay reform for all categories of government employees, starting in financial year 2018/2019. Relatedly, the policy of one secondary school per sub-county and a technical school per constituency will be reconsidered," reads the framework paper.
 
The Finance, Planning and Economics Development ministry, also recommends that government stops extending grants to private schools and hospitals starting FY 2018/19 on onwards. The paper also shows that government plans to freeze all planned recruitment under all sectors such as health and education except under very special circumstances.  
Government says the recruitment will strictly be done on replacement basis and also say there will be no selective pay awards to avoid agitation and piece meal management of the pay increment pressures from the individual employee cadres. The Finance ministry says all enhancements will be addressed in the comprehensive pay reform.  

"In line with on-going Public Finance Management (PFM) reforms, effective financial year 2018/2019, all non-tax revenues (including appropriation in aid) will be collected by Uganda Revenue Authority, channeled to the Consolidated Fund and released normally to the Treasury Single Account (TSA) for the spending institutions," states the budget framework paper.

Also effective next financial year, there will be no more creation of special funds, which the Finance ministry says normally results in disjointed interventions and fragmentation of resources that in most cases do not create the desired impact.

The sectoral committees of parliament are expected to discuss and adopt policy statements from the ministries, departments and agencies. The policy statements spell out areas of focus in the ministries, unfunded priorities and the total budgets.

The Budget committee of parliament is also expected to scrutinize the proposals in the budget framework paper and write a report to parliament for approval.

Comments

+1 #1 Ensi eno! 2017-12-28 15:06
As long as our taxes are treated by M7 has his personal money, we shall pay through the nose so that he leaves large and wastes it on 'buying' off opponents.

Next will be VAT at 25% and PAYE or Pay As Yoweri Enjoys at 65% from the current 40% for those earning 10 million and above monthly.
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+2 #2 rubangakene 2017-12-28 20:25
Some knee-jerk solution to our on going woes! The issue requires a well thought out analysis. It smacks of the style of Idi Amin's regime.

You see, our roads are damaged by foreign trailer-lorries and 'juggernauts' that don't even buy fuel from Uganda! We must heavily tax those that import 4-wheel luxury SUVs that guzzle fuel that the govt. buys in our hard dollars and reduce the number of private cars on the roads by improving railway passenger/freight transport.

Nationalise long distance bus services and heavily regulate private operators. Medium sized TATA lorries and small pick-ups that lug our produces from farms to towns should be exempt from this 'stealth tax'.

As it stands the Shs. 100 tax is not fit for purpose and will fail miserably!
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0 #3 Akot 2017-12-28 21:53
Ensi eno, agreed!

Ugandans Must Unite & bring change & Now!

Frence has given tax relief to theirs with big fortune & companies so that they employ more people: France is a country that gives free Education-National healthcare-gives allowances to job seekers & Mayors offices help those who cannot pay bills! Even when education if free, every French child gets at least 250 euros at beginning of every school year!

So many parents lose custody of their kids in UK because they don't take them to school & government see to it these kids are helped out & get education as priority while those +16 years are given social accommodation & helped with education-training!

Ugandans know people are going to Europe for mainly: education-healthcare-houising right?
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-1 #4 Akot 2017-12-28 22:01
rubangakene, agreed!

Museveni's projects & use of tax money goes against National interests because it does not concern him!

So, unless Ugandans throw him out, there is no way things will change & our people will feel at home!

Ugandans must focus on change & this is urgent & this is only possible through Unity, as in the rest of the world!

Even developed countries call people to Unity almost everyday today to get things done for the good of citizens!

Did Ugandans celebrate Christmas & what did they ask God to forgiven them for or what do they want Him to do for them, knowing God helps those who help themselves-love/respect one another-live together as 1 & not tribalists-not racists...?
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+1 #5 Zaitun 2017-12-29 10:26
It was easy to throw away money throw the open windows for political gains to your pigs and in the end, the state of government finance is in limbo.

Tax payers and motorists should not be used as milk cows every time the so-called politicians have swindled what was in the coffers. We do not run a State as if it was a toy to play with; we can not even find responsible family heads running their daily affairs the NRM way.

You have shown all the limits of your ignorance and lack of intelligence in running a country. You better abdicate now as things can no longer hold together!
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+1 #6 samex 2017-12-29 13:02
What is the life span of the roads to be repaired?if its 15-20 years than ,the roads where substandard.

It hurts so much when gov't falls short of money it resorts to milking its citizens.

And what hurts the most is not put taxes to good use. e.g health, education, service delivery and welfare of the citizens.

Actions have to be taken, UGANDANS wake up.
we are losing it all,for God and my country
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0 #7 Akot 2017-12-29 17:49
That Rwandese giving RED to Akot should know that one day Ugandans will get tired of Akot calling them to Unity to take back their country & they will Unite not only to shut up Akot, but Rwandese too!
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0 #8 Akot 2017-12-29 18:02
Zaitun, understood, but,

The rotten government is not aware things can no longer hold together! The only ones to show them are Ugandns who provide tax money-the illiterate-the sick-the jobless-parents, through Unity for common purpose!

Ugandans cannot continue providing tax to a rotten government in peace & expect it to abdicate!

Even when Ugandans don't want to Unite & bring the rot to stand still, they should know there are still 3 years until next fake election!

So, are Ugandans going along & will wait for next sham election, more so there is no common opposition leadership?

Why is it only Ugandans not aware they are in a dark hole with steel bars wraped around them & they alone can get out & it can only be in Unity with just ONE opposition leader?

Museveni & his gang have what they want & will NEVER let go unless kicked out in UNITY!
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0 #9 Akot 2017-12-29 18:07
Quoting samex:


It hurts so much when gov't falls short of money it resorts to milking its citizens.

And what hurts the most is not put taxes to good use. e.g health, education, service delivery and welfare of the citizens.

Actions have to be taken, UGANDANS wake up.
we are losing it all, for God and my country



Thanks!

Only Unity will bring an end to this continued abuse because it's those abused who are providing the tax money misused!

Power belongs to the people, except in Uganda, so the demons will go on spitting on Ugandans unless stopped by the people keeping them in power!
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