{UAH} Are we just lazy? Olive oil

Uganda budget is now financed up to 80% by tax revenues of only 20% of the tax eligible population- that is the "formal economy" of registered taxable companies and firms.

The invisible 80% of eligible taxpaying population, which basically is both in the informal and formal sectors, is 4 times bigger than the current tax paying population!

This going by C.G. Doris Akol projections, will amount to Shs 75 UG trillion.

But even then, if the state was to stop financial hemorrhage and reckless cash outflow like in;

 

- commercial banks and indigenous banks,

- mobile phones and UTL fixed line phones,

- media and national networking of homes,

- micro dams, (borrowing)

- Medical Bills internationally

- Law firms

-  Construction (borrowing) and indigenous road construction capabilities,

- Estate development (borrowing) and management,

- Forest (Kalangala) research and  timber and wood

- processing of mineral, crops , textiles and leather products,

- public transport (railways, water, airways),

- service sector like research and medicine innovations

 

Uganda will be producing a budget which will be in the region of 160% of the current one! It is not fantasy but pure facts.

I will offer an example: BIDCO claims to produce oils and soaps at a taxable fee of UG 250 billion. How much money then goes to BIDCO coffers in Indonesia?

Uganda has many oil seeds; ensoga soga, cotton, chestnuts, walnuts, peanuts(groundnuts) cashew nuts, coconut, almonds dried figs, maize and indeed oils from trees. if BIDCO were to process oils and soaps from local production of these seeds at village level, Uganda would be earning 7 times 250 billion BIDCO claims to pay in taxes!

This is not very difficult to understand. URA can give you what it collects from each sector above which is largely only VAT, excise duty plus income taxes. If you add it all up you can imagine the lose of revenue Uganda is faced with. Go further and see what happens,

instead of exporting furniture it is instead import furniture. That the country instead of providing media infrastructure it procure services from star, zuku, DsTv etc,.

I have calculated, in just two – three weeks if we had a region railway network – without transporting any goods or cargo but only passengers it will make shs 45 billion Uganda just in two to three weeks!

 

What a country with blind planner! God help us.

 

Bwanika

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Bwanika Nakyesawa Luwero

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