Kenya: The National Treasury & Planning – Press Release – Budget & Finance Bill Presented to Parliament (30.04.2021)

Opinion: Bobi Wine – Only two things in life is certain – Death and Taxes…

“The Uganda Revenue Authority has ordered former Presidential candidate, Hon. Robert Kyagulanyi to pay an extra UGX 337,698,776 in taxes before he can get back his armored car” (NBS Television, 22.04.2021).

In life there is always to certainties. There will either be death or taxes. Nothing else really certain. Well, except for impunity and excessive use of law towards dissidents and opposition in dictatorships.

This here is yet another one those… where the authorities was shocked that the opposition leader and National Unity Platform Presidential Contender Robert Kyagulanyi aka Bobi Wine could muzzle together and get enough support for a bulletproof car. The remittance and support was so strong that they made it possible to purchase it for him.

Apparently, that gesture and ability to file the paperwork and get it concealed to the opposition was hurting the pride of the authorities. They had to retaliate and send a message. That is why after a long time of speculation and supposed works. They have now fined Bobi Wine and he has to pay a small fortune to get the car released. Surely, if he seeks relief in courts, they will dismiss it or not let it play.

Bobi Wine was destined to loose this one. Especially knowing how obsessed the President is with cars. The President nearly believes cars works as PPE against COVID-19. That is what he asked donors and companies to give to his government during the first lockdown. That’s why he was bugging at one address, that the companies hadn’t donated enough cars. So for the old man seeing the pictures of Bobi Wine flexing with a car must have hurt his pride. Bobi Wine got his pimped up ride and Museveni still drive his old Toyota Land Cruiser.

Well, this here is just a muster and a proof of a rigged system. This wouldn’t happen to a crony or an associate of the President. No, they would get cars for free and part of their office. The President would ensure that and they would also allowances on top of that. So, this is just retribution and trying to hurt the upstart.

The government have already gone after his friends, tried to purge his big-name comrades and taken away the freedom of plenty of others associated with Bobi Wine. So, taking his car is practically nothing in comparison to the drones, the abductions and political prisoners the state is keeping in their prisons.

Bobi Wine deserves better, but to expect that in 2021 is too much to ask. The Yellow Bus can only ride over its citizens, and only the compromised can take it for a ride. The rest is unlucky bystanders and walking citizens hit or knocked by the bus on the side-walk. That is just the way it is.

The Bulletproof car is only a proof of the vile and foolish reign of this President. The mismanagement and oppression. It is just the proof of the problems and the systemic maladministration. The NRM cannot offer anything better, because this is all they know and they are awaiting orders from the “high above”. That is why things ends up like this.

It is nothing new. It is a car today. Yesterday was the beret, the colour, the clothing, the party and the campaign itself. Everything Bobi Wine is illegal or have to be questioned. Since his existence by law is by definition “unlawful”. That is evident and until proven otherwise. That is what I believe. Peace.

South Sudan: National Revenue Authority (NRA) – Re: Suspension of Withholding Tax on Pension Fund/Social Insurance Fund (02.03.2021)

The State propose a 0,5% Cash Withdrawal Tax (!)

The Ministry of Finance, Planning Economic Development (MoFPED) is preparing a tax on every cash withdrawal from ATMS or Commercial Banks. This means every time someone takes out cash from their accounts. The customers i.e. the citizens have to pay the state a fee to access their money. Just like they do with the mobile money transactions. That’s why the state is proposing this.

This is an easy way to access more funds without adding any value to the monetary market. The state will not do anything, but adding a fee. A percentage on every single transaction. In the meanwhile, they will also deplete funds from the citizens. As the citizens have to calculate every transaction to ensure they are paying less taxes. That is what people does when they want to ensure they get most value out of the money. Which will be standard.

The manner of doing this. Is in a state where there is already lots of cash and money in circulation. The Republic is built with cash based economy and need for cash itself. That is why in some ways this will even be a double tax. Especially for the ones having first mobile money transfer to family members and loved ones. They are first paying a fee to send it too them, which is the Mobile Money Tax. Then the person receiving the Mobile Money will have to pay either at a bank or at ATM the Cash Withdrawal Tax. In this way the state is getting paid twice before the money is even getting in circulation.

I wonder, if the MoFPED have thought of the consequences of this? Has the state considered the implications for the citizens? Or are they only trying to figure out new ways to cash in on every citizens. So that their behaviour and need for money will cost them.

Because, it is normal that foreigners or aliens are paying to take out money at a ATM abroad. They usually pay a transfer fee between their currency and the Ugandan Shilling. That is making sense and the bank also takes a fee for doing so. A tourist knows this and accepts it, as it is a way of easily access and securing local currency. However, what the state is proposing is paying a tax to access your own money.

The state is billing people for withdrawal of cash. In essence the state will take money for service rendered for printing money. They are billing the public for having circulated coins and bank notes. Since, they are taxing every transaction and that’s really ill. This sort of enterprise isn’t growing the tax-base, but taking away more funds from circulating. The more you tax, the more funds you are depleting from the system. In the end you have a evil circle where all taxes are overburdening the citizen. In such a manner, that they start to do all business and transactions on the black-market to save money. That is when the state loses out and cannot access these transactions at all. This because they have found other means of moving money and doesn’t want to pay added taxes on their needed funds.

The more these taxes are put forward. The more funds are taken away from the ones who needs them. This is all taken away from the citizens before they get to access the money. Either it is mobile money or taken from their account through a withdrawal. That should worry the Representatives and the ones making laws. The amount of 0,5% doesn’t sound like a lot, but imagine that on every single transaction or withdrawal. That will be huge sum and be a costly endeavour. Peace.

Uganda: Deficit financing is creating an evil circle financially [72% of revenue spent on debt repayment!]

“By implication, if sh15.7 trillion for debt service-related expenditures is subtracted from the sh21.9 trillion the Government will have generated in revenue collection, it means that 72% of the country’s revenue collection would be spent on debt repayment. The committee raised concern that the high rate at which government is borrowing is not commensurate with the low level of increasing government revenue collection and, therefore, violates the country’s charter of fiscal responsibility. The report indicates that as of June 2020, Uganda’s public debt had reached $15.27b, which is equivalent to sh56.9 trillion. Out of this sh38.9 trillion is external debt and sh17.9 trillion domestic debt” (Moses Mulondo – ‘Govt earmarks sh15.7 trillion for debt repayment ‘ 03.02.2021, New Vision)

The news on how the state got to repay old loans is coming out. As the Ministry of Finance, Planning and Economic Development (MoFPED) have put forward the budget for the Financial Year of 2021/22. This is initially telling stories on the revenue or tax base, which will be preoccupied or used for paying debt repayment.

Just to put things in perspective. This is the definition of ‘Deficit Financing’:

“Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).

This here is telling the story, which the state media and others isn’t telling. Because, they are borrowing funds to cover up for the deficit. The deficit is created as a result of the rising cronyism and misuse of funds. These funds have to cover the bloated government and its staff. That is why deficit is created to fix the shortfall between the needed revenue and the expenditures of the state. They are using loans to cover and fix the lacking revenue of the state. If the state had enough funds through its tax-base, the state wouldn’t need these loans in the fist place.

However, the state have prolonged with this game over years. The state has used loans to cover its baseline and usage of funds. They have went out for foreign creditors to get enough funding. That shows that the state haven’t been fiscal responsible. They have misused the authority of the state and taken up loans, which now accumulate to over 70% of yearly revenue. While this is happening. The state and the Parliament is still issuing new loans and creating a bigger debt burden. That is what they are doing… and that cycle must stop.

Soon, all revenue will go directly to debt repayment. We know the state wants to have debt relief, but this is self-created by the regime, as they are borrowing for basic commodities and necessities. They are always loaning funds to build development projects and infrastructure, which will be costly. As funds are lost and misused in the building of these. That is why the price of road is so expensive and also projects in general. Therefore, the state is crewed over more than it can swallow.

That is why the state is deficit financing and its become a burden, which it cannot carry. The debt is not sustainable. When 72% revenue is spent on debt repayments. That shouldn’t be a thing, but that is fiscal policy of this regime and apologist cannot hide the fact. They have run down the state and taken up loans they cannot carry. Peace.

Opinion: Trump is piss-poor, apparently…

For someone living on image and on PR. What the New York Times piece did to President Donald J. Trump. They shattered the glass, they broke not only a story, but broke a fragile, piss poor businessman and shown his true character.

President Trump have lived on a lie. That his Trump Organization was a giant conglomerate. A corporation with many ties, a hectic financial structure and a supposed viable real-estate portfolio. Alas, that is clearly not the case.

His businesses like so many cases in the past is practically bankrupt. His living on a loans, rates for licencing deals and hallow points of extortions of the properties he does have. This isn’t a viable business and the model of profits is on idea that he can offer them something. That is why he has had favourable foreign dignitaries on his properties. It all makes sense now.

That Trump is morally bankrupted has been known. His a despicable racist-in-charge. It has been proven time and time again. Trump has proven that he doesn’t care about others or only does it when it has favours him. Also, if they possibly have liabilities or leverage over him. Then he might bend rules or regulations to ensure he gets the cut he needs. So, these things can possibly go away.

If the Saudis have paid him money. I am sure he will do their dance. Surely, through several of shady loan to the Trump Organization. The Organization possibly own “Moscow money” and that’s why he sings show-tunes to them. The Ohio Gang and President Harding created a lot of scandals because of their financial ties back-then. If they could that, what would the finances and fiscal character of this President do?

I believe he would do whatever it takes to get from red to black. The President would ditch international agreements, destroy ties with other countries and change the balances of power within a war. Just to ensure his estates and his accounts are saved. He doesn’t want to sell the Trump Tower. The President doesn’t want to loose his golf-courses or several of hotels. That will hurt his pride and his business acumen, which is clearly not stellar. This we know, because of all of his bankrupties in the past.

President Trump hasn’t only tricked the taxes and possibly broken various of statutes, which is the reason for the audits of his taxes. The reason why the Attorney General of the Southern District of New York (SDNY) have filed cases and is investigating the President and his Organizations.

This all make sense. The man can be bought, because he has nothing. The man wanted to be branded as a rich billionaire! While he was broke and carrying water over his head. This is why he cannot loose the office. Because, he needs the office and the powers of it. That gives him leverage and the abilities to please both his creditors and get foreign dignitaries to bankroll his businesses. This is misuse of his office, but that is the only way he can fix his failing corporations. That is really not ‘The Apprentice’ style, but more the broke broker who is high on his own supply. Looking for the next deal to fix the former failing deal.

Who knew Harding could be run circles around by someone like Trump? Trump is misusing the office to save his ass. The President apparently needs the office to save his business. He is neither rich nor smart. The man can easily become someone’s donkey, because they are giving him the carrot and the stick. The whole motivation for his actions can be to save his “empire”, which is burdened by loans and lack of revenue. That is also the reason for why the IRS Tax Forms never was released into the public in the first place. Where the supposed “billionaire” didn’t pay much or little, to no taxes for years.

Some would call what the President has done using Foreign Policy to cover his businesses, loans and lack of taxes as a racket. I could see that too and wouldn’t be shocked if he did. Because, the man doesn’t have scruples, but wants to save his failing enterprises. While he can use the Office and the Government to salvage the hurt. That is maybe why he has stayed so many days at his estates as the President. To cover more expenses and ensure profits to the bankrupt Trump Organization.

He owns $421 million in loans and $100 million in penalties to the IRS, which means there is enough motives to do what he does in office. He needs salvage and what else can he do than trade Foreign Policy for Financial Favours. That is very simple to equate and makes sense.

President Trump is broke and needs a windfall, but first he needs to answer to the SDNY and other pending cases. Which been looking into him… for various of reasons. This “empire” will fall and his businesses will crumble, unless he has some oligarchs bailing him out. Peace.

The Art of Deficit Financing: Budget 2020/21

“Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).

What is striking from the 2020/21 budget is that its not only 45 trillion shillings, but the way they are financing this spending. Because, the budget need financing or revenue to pay the expenditure. You cannot use air to pay the bondsman. The people you owe money or supposed to spend on needs real cash-flow and liquidity to be fiscal responsible.

What we learned again is the debt deficit financing, which has been common staple in the Republic. Since domestic revenue or tax revenue is about 20 trillions shillings. This means that the rest of the budget has to paid for in various of other ways. In this regard, the state are borrowing, refinancing and gaining more debt. As the state is also wasting more of the budget on paying interests.

This is really making a evil circle and continuing debt trap. Even if the trillions upon trillions owned by the state is growing. That this still haven’t hit a debt ceiling. However, the issue here is the amount of paying interests. They are wasting away money on paying for old loans. This is what the state is initially offering. While it is gaining new debt to finance the over-expenditure today.

When the state pays 4 trillion shillings (9% of the budget) in interests. That shows how destructive this is for the budget. How important it has become. When 1 in 10 shillings of the budgets are paid in interest. This money could have been spent in all parts of society. It could have changed people’s lives and invested in the future. Instead its paying on the debt trap created by the same state.

Deficit financing and refinancing will only ensure the future generations are paying for the growing debt created by the current government. They are borrowing on the future growth and supposed revenue. Even as the state is ballooning the budgets, that they are not able to cover more than half. That is worrying and should worry the republic too.

Yes, that budgets get ballooned in election years are common. That the budgets are insincere and write of taxes in these years are typical too. All of this isn’t new. It is what happens when the Republic is preparing for elections in the coming year. Therefore, the state needs a treasure chest to bling out on chiefs, voter tourism and whatever else to look good for everyone.

That is why this budget is like this. We can clearly see that the state are continuing to acquire more debt, which means the interest payments will grow every year. This is why the refinancing and growing debt should worry everyone. Because, just like the interests payments are now at 9% or 4 trillion shillings this year. We can wonder how it will look when the grace-periods of several of loans are over and the initial price of these as well.

The Republic of Uganda deserves better, but the leaders and the ones in-charge are making it like this. They are not concerned about the future and that is very clear. As they are spending and squandering away the future today. Then someone have to pick up the tab in the future. Peace.

Malawi: MPs soon getting tax-free rides!

In June 2019 with the newest salary increases, the Members of Parliament was getting 2,5 million Malawian Kwachas monthly, while the average median salary is about 159,000 MWK. However, this is what 50% of workers earns or lower. Meaning the MPs before the newest pay-rise they are earning around 15 times more than over 50% of the general population.

So with this in mind. There is new reports that the MPs whose already rich by all standard in the Republic. Are ensuring their own wealth with more incentives. This being tax-exempt cars. They can buy cars without paying taxes. Before, the newest incentive, they we’re not paying for it anyway during their elected term. However now, it is totally tax-exempt. They will not have to pay exercise duty nor paying customs after the fact. Meaning its only the cost of getting it from abroad and shipped to Malawi.

The MPs are not paying taxes on their cars. MPs will be allowed to do this with two cars during their term, while the Ministers are allowed to buy three.

So, they are getting a real bargain. While the ordinary citizen has to pay added taxes on the commodity. The MPs and Ministers will drive around in cars, which they never paid taxes for. This is all for the up-coming term from 2019-2024. The MPs will all have a capital gain and able to save money. Even not really loose to much using the cars and then trading them when their term ends. It is a real incentive to buy extra cars during their term.

This is all a small heist by the MPs. They are getting cheap cars, easily access to cash to buy it with allowance, sitting fees and whatnot. All of this blended with incentives to buy two cars during their term without taxes. This makes the cars cheaper and makes it good deal for them.

Every single citizen has to pay the levies and taxes on their cars. Only the MPs and Ministers are exempt from it. These people are ironically representing the people. A people who has to pay taxes for the same product and vehicle. While the MPs are getting a free-ride, the public have to cough up the taxes for it. That’s shows how unfair it is and the public cannot stop them. Since, this is something they vote for themselves. Just like they do it with the salaries. Which is already superior to most in the Republic.

The rich are getting richer, while they poor continue to struggle. These are the representatives of the people. They are acting like kingpins and forgetting their part. They are enriching themselves on a position, which is bestowed on them. Instead of showing gratitude and serve the public, they are finding new ways of gaining wealth. This is misuse of office and this should be the perfect excuse of getting new leadership. Which represents the public and their needs, not only fill their own pockets. Peace.

Opinion: Chameleone needs to “pimp his ride” or just pay his taxes!

This is not the first time Jose Chameleone struggles to pay taxes. Jose has forgotten to this several of times. It is actually his M.O. and a thing he does. It is just his arrogance as he lives in a house on a hill and the rocky road to it. Makes him think that the Uganda Revenue Authority will not touch him.

In 2012 Jose got in trouble over a 2004 Toyota TX Prado, as he undervalued the car to URA and therefore the car got impounded by them. In 2014, the singer had to answer for back-taxes on his Cadillac Escalade , as he had tax-arrears on it. Also in 2016 the singer had tax-arrears on another Escalade.

Now in 2020, the same issues happens again. Now with his Toyota Land Cruiser V8. It is like this man doesn’t like to pay taxes or try to avoid it. Chamelone tries to run away from the tax-man. The man doesn’t want pay the state. This is how it seems, since he cannot manage to cough up for the cars he buys.

This is the third car he haven’t paid properly his dues. The man is incapacitated or ignorant of the levies of taxes on motor-vehicles. Seems, like someone needs to give the Mayoral Candidate a lesson or get him to meet URA. Since, this is something he repeats. He rewinds the same story, only to switch with car and what type of car. The rest is the same.

Chameleone can blame others, he can throw under the bus and say that URA is on a vendetta. However, most likely his lazy and his Team isn’t covering for the man. The auditor and the ones running Leone Island isn’t doing it well. Since, this continues to happen. If they have the same person running the books of the company. Than that man should get the axe and the singer hire someone new. Because, this practice is getting old.

You have three cars in questions of the years now.

First in 2012: Toyota TX Prado.

Second in 2014: Cadillac Escalade

Third in 2020: Toyota Land Cruiser V8

As we see, the theme continues with just another ride. He could either pimp his rides or do himself a favour. Pay the damn taxes and move-on like a grown man. You own things, now cough up the dough and let it be. Peace.

Bank of Uganda: Measures to mitigate the economic impact of COVID-19 (20.03.2020)