The Ministry of Finance, Planning and Economic Development is in final stages of drafting a National Tax Policy.
The policy expected to become public in December, will provide a set of guidelines for the taxation of goods, services and income as a vital tool for revenue mobilization.
The revelation was made by the State Minister for Finance (General Duties), Hon. Henry Musasizi, in a response to concerns raised in a statement by the Leader of the Opposition (LoP), Hon. Joel Ssenyonyi, during a plenary session chaired by Deputy Speaker Thomas Tayebwa, on Thursday, 08 August 2024.
Ssenyonyi’s was troubled by what he referred to as over-taxation, which he said has stifled aspirations of small business owners and working families across the country and emphasised the need to develop a comprehensive taxation policy to ensure that imposition of taxes is informed by a well-structured tax framework.
The LoP’s statement was in response to the President’s State-of-the-Nation Address delivered on 06 June 2024 at the Kololo Ceremonial Grounds.
Among Ssenyonyi’s other concerns was the rising unemployment and high cost of living, pointing out government’s failure to effectively utilise borrowed funds which has left many loans unutilised or mismanaged.
Musasizi noted that government’s increased investment in oil and gas, and related infrastructure development like the airport, oil roads and dams among other projects, has increased the country’s debt servicing obligations.
He added that Uganda’s nominal debt-to-GDP ratio stands at 46.91 per cent, which is below the 52.4 per cent stipulated in the Charter for Fiscal Responsibility.
“We have reviewed the entire loan acquisition cycle to ensure that we only sign up for projects that are ready for implementation. A comprehensive Public Investment Management Strategy framework has been developed to enhance the efficiency of public investments,” Musasizi said.
On the burden of high youth unemployment, the minister noted that government initiatives including the Parish Development Model, EMYOOGA and the Agriculture Credit Facility, among others, will boost enterprises and households in formal and informal economies.
“From 2019 to date, over 314,548 employment opportunities have been created under the EMYOOGA programme, and in 2023, a total of 51,841 jobs were created by Enterprises funded by Uganda Development Bank,” Musasizi added.
Musasizi said the development of automated systems in key accountability areas through the Integrated Financial Management System and electronic Government Procurement, are among measures to counter corruption in the country.
“Automation is one of the many ways through which corruption in government can be minimised, because it limits direct access or human interface between public officers and citizens, hence eliminating the opportunity for an act of corruption,” said Musasizi.
He added that digitalisation will address the shortage of medicines in hospitals as there will be a link between delivery, storage, diagnosis, prescription and dispensing.
Distributed by APO Group on behalf of Parliament of the Republic of Uganda.