{UAH} *M7'S TAXES ARE VERY EXPLOITATIVE AND CREATE INEQUALITY*

*By Harold Kaija*

From Saturday I have been looking at the tax imposed on Gold comparing it with other new taxes and also looked at 100/= imposed on every litre of fuel as substitute of the earlier annual levy of  200,000/= for each car.

First forward.

Gold $200 per KG 

Internet 12%

Beer sh. 230 per litre

Nuni 70,000

Rent 30%

Let's use the tax on Gold as our yardstick 

Gold costs $57,560 (shs.207,791,600) at the world market per KG. Uganda levy at tax of $200 (shs. 722,000) per KG which is 0.0034% not even 1%

A Ssempala who earns 1M, pays PAYE of 30% which is 300k. For today we shall ignore the 100k Local Service Tax he pays per annum.

If Ssempala accumulated the shs. 207,791,600 which is a KG of Gold he would pay at tax of shs. 62,337,480!!

If another Ssempala has rentals, Mr. M7 wants 30% tax.  If he collected the money amounting to a KG of Gold he would pay 207.7M

Wheat was taxed an addition 100/= per KG 

If Ssempala was in chappati or bread, by the time he consumes the shs207.7M of wheat (34,632 packets), he would have paid 6,926,386.7M 

Beer was taxed an addition 230/= per litre.

If Ssempala consumes (29,684.5 litres) that makes 207.7M he would have paid at tax 6,827,434/= 

The tax on internet was put at 12%

Ssempala consuming 207.7M internet, he would pay taxes amounting to 24,934,992

In all cases, Ssempala pays far more taxes on Rent, wheat, beer and internet than an investor who deals in gold. 

Secondly Kasaija had introduced an annual tax of 200,000/= for every car and 150,000/= for boda boda. When we made what they call noise, the withdrew that tax and introduced 100/= tax on every litre of fuel.

Let's see what what cars will pay per year.

If Ssempala consumes 30,000/= which is 7 litres per day, he will pay;

Daily         700/= 

Monthly   21,000/=

Annual      252,000/=

If Ssempala has a taxi which operates around town, he will spend 80k in diseal 22 litres per day. He will pay;

Daily        2,200/=

Monthly  66,000

Annual     792,000

If Ssempala has a Fuso which bring matoke from Isingiro, it will consume 314 litres a return trip. He will pay at tax;

Daily        31,400/=

Monthly  942,000/=

Annual    11,304,000/=

Ugandans thought they were saved of a bigger tax and it was substituted with huge indirect tax.

Ugandans will pay in the nose.

*HAROLD KAIJA*

Is Deputy Secretary General 

Forum for Democratic Change

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