MinBane
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Archive for the category “Tax”
Opinion: BoU illicit acts was accepted by the regime for decades!
The Bank of Uganda (BoU) have during the last two weeks shown it blatant side and also its frauds to the public. As the acquisitions of failing Banks hasn’t been done with procedures or protocols. They have not acted in good faith. They have acted ill-willed and certainly not considering that their actions would be looked into. As they was the buffer for the state and the Movement itself. While they could monitor and configure the acquisitions of these failing banks.
That the leadership of the BoU are a proof of the how the state are triggering themselves on the common market. It is a rodeo, it is the Wild West, where the biggest head are getting the stakes and hopefully nobody will look into the transactions. That was until the Parliament and the Parliament’s committee on commissions, statutory authorities and state enterprises (Cosase) started to question the acts of the Bank. The realities of how the BoU has acted.
They can not hide it under the rug. This all is happening because the BoU couldn’t explain the transactions and trade-off with the recent Crane Bank. That is why they are looking into Greenland Bank, International Credit Bank, Cooperative Bank, Global Trust Bank and Teefe Bank. The BoU even sold three banks to Ghost Companies not existing, that was based on Mauritius. Which, shows how the leadership have failed their role or if not laundering money for the high above.
As well, as the most striking feature, is not only loosing the documentations for the COASE Committee in the recent takeover. But the evident acts of not having the assets, the inventory or even following any procedures doing so. What is worse, the lack of oversight or even critical eyes by the Parliament or even the Ministry of Finance, Planning and Economic Development (MoFPED), as these should have seen it coming. They should wonder why securities, the statutes and the banks was sold without the procedures and needed clearances. This to secure the clients and also the assets of the banks.
It is like they have closed into thin-air, in major heists of the elites, where the BoU have used their tools of disposal, to clear the tenant’s and their liabilities without any scrutiny. Clearly that has been the message, as the Banks have been lost, but been transferred to new homes. These homes has gotten the fortunes or their assets without the BoU could tell what they pushed further. Even selling it to companies not existing.
That the BoU have problems are clear, but they are like the state in general. Who has Ghosts everywhere and creates them for a reason. To hustle and create ghosts to earn more on non-existing projects, this has been there as long as Museveni have been president. It is just a proof of illicit and the problems of society in general. BoU is just a mirror of the administration, of the government and the backwards ways to grabbing money, while the honest are thieved.
The BoU have all been wrong, done it horrific and massively underestimated their history, their practices and the realities, which they now suffer. Certainly for a reason. If the President wants to get rid of one of the leaders within the Bank. This is the sort of scandal that clears the house. But these transactions and these sort of activity will not go away. As the elites and the Presidency has accepted this for decades. This has been done since before the millennium.
Therefore, it will be more skeleton released and show more disgraceful acts from the BoU. They have done it, because the regime has earned on it. If not these practices would have been gone long time ago. Then the Special Force Command would have ambushed the Bank and barricaded it. Peace.
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Opinion: OTT and Social Media Tax is failing as anticipated!
The Over The Top Services Tax and Social Media Tax can only be said as utter embarrassment by the National Resistance Movement (NRM). There are enough things to know this would happen, as the plan was for getting the revenue, but not thinking the consequences of the taxes. That is why, today’s revelations about the levied taxes isn’t that surprising.
Without due-diligence, it is hard to know the effects and the means for why it is put. It seems like the President and the NRM had a dream of cash-flowing into the Consolidation Fund without any consequences, but apparently it does. And when you add taxes on things, people either use less or plan more effortlessly to circumvent this added cost on their daily lives.
Daily Monitor Reports: “Government collected Shs20.5b from social media in the last quarter ended September, according to data obtained from Uganda Revenue Authority. The tax, which was implemented in July, was however, less than the Shs24.9b target that URA had hoped to collect in the period. URA has a monthly target of Shs8.3b. The tax was introduced in the Excise Duty amendments of financial year 2018/19 requiring all social media users to pay Shs200 per day, before accessing certain platforms such as Facebook, Whatsapp and Twitter, among others. Government intends to collect about Shs100b before the end of the 2018/19 financial year” (Christine Kasemiire – ‘OTT raises Shs20b in first quarter, URA fails on targets’ 07.11.2018).
While it is a few days ago, that the MTN Uganda promised the 24 hours since paying tax, that the tax would last from the time of payment of the tax until the time is spent. Instead of how it has been, until the new day coming. Meaning, that often you would only get half-a-day with the Social Media, as the taxation would start again, when the clock turns 00:01.
That is why this was news to: “Airtel Uganda and other telecom service providers have announced a fundamental change in the Over the Top excise duty imposed on social media following a directive from Uganda Communications Commission, the telecommunications regulatory body in Uganda. Since its introduction in July 2018, the tax commonly known as OTT or social media tax, was only valid up to midnight of the payment date for daily users. With the recent changes, daily subscribers can now enjoy internet services for a complete 24 hours – right up to the time that they subscribed 24 hours earlier. This also applies to the weekly and monthly users who can also enjoy services until the time that they subscribed” Brian Emorut – ‘Social Media tax validity to now last 24 hours’ 06.11.2018 – Guide 2 Uganda).
So now, Airtel and MTN has changed their pattern of getting the OTT tax. While URA is struggling to met the supposed the quota. This shows that the state had not considered all implications to the levied taxes. The NRM clearly didn’t envision, either the use of VPN and also that people cannot afford it. Because it is barrier to be even using the social media after the taxes.
Surely, the 24 hours usage and the lack of collection. That the Telecoms and the Mobile Money outlets has been pushed and lost revenue is certain. As the data-bundles and Air-Time had to be corrected from July on and also now the barrier for OTTs are changing again. This is surely showing that the Telecoms and the Republic wasn’t prepared for this, but doing it on orders from the President. Peace.
