Friday August 29 2014

Government will not withdraw new taxes - official


KAMPALA- Government has told civil society organisations and other Ugandans pushing to scrap proposed taxes to wait until next year during budget formulation.

Mr Patrick Ocailap, the deputy secretary to the Treasury, said while responding to a group of youth who converged in Kampala demanding tax holidays on new Ugandan businesses, that citizens must bear the new taxes to allow government provide them with services.

“Where do they want government to get revenues? Different investors get different incentives and we cannot address their generic concerns,” he said.

“They should write to the Finance minister through associations like Private Sector Foundation with specific evidence and wait next year during budget formulation,” Mr Ocailap told this paper on phone.

Civil society and some politicians have been traversing the country lobbying Ugandans to voice their discomfort with the new proposed taxes especially on agriculture inputs.

Government in the 2014/5 Financial Year proposed new taxes to fund upto 80 per cent Uganda’s Budget that was affected by the withdrawal of donor aid due to the Anti Homosexuality law that criminalised same sex activities with harsh punishments including life imprisonment for repeat offenders. However the law was recently annulled by court.