Every Ugandan who understands current affairs knows that the need for Uganda to finance her expenditure is serious.
This can only be done through taxation. However, proposing taxes without studying their implication on tax administration and development is counterproductive.
I have been trying to understand the VAT proposal on insurance services. Much as I see no material effect on the procurement of insurance services in Uganda, given that those who procure them have outstanding reasons, its administration seem to be lacking.
Currently, for every insurance policy sold, there is stamp duty.
This is a form of sales tax. Imposing VAT, another sales tax, is double taxation to say the least and over taxation at most.
Imposing taxes on agricultural input discourages farmers. It would make more sense if they were taxed at output point when they have already earned from their produce.
How is government going to lure the youth into agriculture when it is becoming more costly to start an agricultural project?
I propose government considers imposing a tax on wealth. This can be done at inheritance point. At the point the deceased person no longer needs the assets and the heir(s) take over and start earning from the said assets. It is at this point that they should “PAY As You Earn”.
I implore Ministry of Finance and Parliament to critically analyse the effects of the proposed taxes before implementation and create new taxes rather than duplicating old ones.