Ukraine: Seized Russian tanks, military vehicles or military equipment is now “tax-free” combat trophies

The war that has lasted over a week now and there been viral videos of farmers or citizens impounding tanks in Ukraine. We have seen the powerful resistance and willpower of the Ukrainian people, as they have no fear to either destroy or burn military vehicles. To take it further some farmers or citizens are even taking military vehicles to their homes or turf. These have either gotten stuck or abounded by Russian soldiers, as they lack logistical support or gasoline to move forward in their invasion.

It’s really striking of the government and the National Agency for the Protection against Corruption (NACP) are making exceptions like these. They are in the middle of war-time and it is circumstances where things are out of control. The taking of military vehicles and equipment is directly helping the motherland and part of self-defence. Therefore, it is really something else.

Just read here:

“Have you captured a Russian tank or armored personnel carrier and are worried about how to declare it? Keep calm and continue to defend the Motherland! There is no need to declare the captured Russian tanks and other equipment, because the cost of this … does not exceed 100 living wages (UAH 248,100)” (…) “Speaking by the letter of the law, combat trophies are not subject to reflection in the declaration for the following reasons: they were acquired not as a result of the conclusion of any type of transaction, but in connection with the full-scale aggression of the Russian Federation on February 24, 2022 against the independent and sovereign Ukrainian state as a continuation the insidious attack of the Russian Federation on Ukraine launched in 2014. Thanks to the courage and victory of the defenders of the Ukrainian state, enemy military equipment usually comes to you already destroyed and disabled, which makes it impossible to evaluate it in accordance with the law On the valuation of property, property rights and professional valuation activities in Ukraine. Therefore, it is also impossible to find out how much such property costs” (Ukraine’s National Agency for the Protection against Corruption (NAPC), 01.03.2022).

So, this is the power of resistance or defiance against the Russian Federation invasion of Ukraine. As the state is defending the taking of combat trophies. The citizens of Ukraine have now free will and ability to scavenge the Russian convoys and left behind military vehicles. This is all part of the law and the authorities is encouraging it.

The Ukrainian farmers or citizens can pick the left behind vehicles or equipment home. There is even a tank, which is now on sale on Ebay. Therefore, everyone is not pinning it to the local government or the authorities, as the Ukrainian Defence can get free vehicles or equipment by this action done by the resilient citizenry. This is commendable in the middle of war and with missiles strikes, air-raids and troubling time…

The NAPC is giving way, but doing it, as this is very costly for the Russian army and doesn’t cost the Ukrainian Republic anything. They are already paying a heavy price for defending the territory and the sovereign integrity.

In the middle of this horrific events and devastations, at least the citizens can get free combat trophies without any hesitation. They citizen can themselves decide the fate over it, they can either destroy it or hands it over the Ministry of Defence. The last option is to hide it on their plots and farms… so, it cannot be used to harm any other citizen or Ukrainian, as its taken in and now its in the ownership of the last user. Peace.

Opinion: The Budget for the FY 2022/23 lacks 2,6 Trillion shillings!

We know that the state during the recent years have been running on deficit financing. This means it takes up loans to pay up for new loans to pay recurring expenditures. The state follows up this negative spiral of lacking of funds to ask for more expenditure than it has funding for. This means, the state is fiscally indisciplined and misusing funds, as they have to later find sources of revenue or take up more loans to fulfil the voted expenditure it has.

That isn’t a sign of a growing economy, but a way to further more loans and add more debt, which has to be paid back with interests in the coming years. As the parts of the government budgets are becoming more expensive, as the state has to fulfil and repay on the debts it has already taken out over the years.

The Minority Report states this:
“The government contradicted itself when it indicated that there would be limited supplementary budgets in FY2022/23 but at the same time elaborately articulate unfunded priorities or additional expenditure needs of UGX 2.62 trillion. Unfortunately, the majority report is silent on this fiscal indiscipline. The indiscipline of supplementary budgets is bound to continue and government hos sent indications that a minimum of UGX 2.62 trillion will be sought in due course” (A MINORITY REPORT ON THE NATIONAL BUDGET FRAMEWORK PAPER FOR FY 2022/23 -2025/26, January 2022).

This here should create headlines, because this is planning to take out loans to cover the current debt, which this will be. Since the state needs borrow or take up loans to cover these expenses. This just show how reckless the state is carrying it’s budgets.

As it can create 2.6 trillion shillings without having any sort of funds or revenue to ensure it. Which means someone else has to foot the bills currently. A creditor will take the debt and make sure the state can pay for the expenses. However, the future citizens has to repay for this and that is fiscal indiscipline and deficit financing. As the deficit needs financing and the shortfall has to be covered, which tends to be covered by debt.

This is unserious of the government and a sign of worry. As they are doing this on the first budget for the financial year and we can know additional supplementary budgets will most likely become bigger than two trillion shillings. We should expect more and the shortfalls might become worse, as all revenue isn’t recovered or the estimated tax-base isn’t as huge as earlier estimates and therefore the state couldn’t perform or have fresh funds to pay for the reoccurring expenses. Peace.

Ghana: Economic Fighters League (EFL) – Abolish the Momo Tax! On the continuing Momo Tax Debacle (20.01.2022)

Opinion: Financial distress and defaulting on loans causes the state to loose Entebbe International Airport

“China is most likely to take over Uganda’s Entebbe International Airport for default on debt repayment. More of Uganda’s national assets are at stake of seizure because of the unrealistic and endless borrowing which has mountained public debt to UGX65 trillion” (Kingdom Media Uganda, 25.11.2021).

The Deficit Financing can only take you so far. The bloated and crony capitalism can only keep you going so far. There been years upon years with loans for all sort of development projects and infrastructure upgrades in general. The loans have gone to buildings, roads and the only international airport in the Republic.

The National Resistance Movement and President Yoweri Kaguta Museveni have over the years promised they have a threshold and control of the amount of debt. However, in 2021 after a downturn and lack of generating revenue. The state is defaulting on it’s loans. The state has taken out loans it cannot carry. Loans are not only the loan, but the services for it too. The loans are with interests and with additional fees, which was accepted on taking the loans. These loans are now maturing and the grace period of not paying interests etc.

The Ministry of Finance, Planning and Economic Development (MoFPED) have promised they can service it and has it under control. They have said it would be used properly and well-spent funds. Nevertheless, the loans are clearly piling up and the state doesn’t have the revenue to pay them. They have recycled to many bad-loans and now they comes to haunt the Republic.

The state is paying for ghosts, huge patronage and a local government structure that is dilapidated from the get-go. Since, the state has such excess of expenditure, but they have to keep that to breathe life into the regime. This is why the state has to spend and use funds like a drunk sailors in port. Just awaiting to be robbed by a bystander or waste a salary at a gentleman’s club. However, this is a serious government and not a drunk lonely man who has been at sea for months on end.

It is tragic, but there been warnings. The Sri Lankan debt to China and what happened there should have been a “red flag”. What happened in Zambia as well should be another story of which the Ugandan government should have reacted too. However, that is clearly asking to much, as kickbacks, graft and grand corruption is part of the diet at the Entebbe/Nakasero State House. They are just eating and doesn’t care about the ramifications of it. Since, the cattle in Rwakitura farm is better taken care off, than how the budgets are financed. This is the sad reality of the Republic in 2021.

The amount of loans and debt will cause more distress. Why? Well, there is no future or ability to clear the debt without any proper revenue. The state needs to find new measures to get fiscal responsible. However, the state cannot just tax things and start to tax people for their every transaction. Because, with doing that… they are taking away money, which will generate more revenue and even more possibility to create new businesses. Yes, the state gets more taxes, but they are also creating a wormhole where there is no option to generate any real income. Since, if you have any transactions, the percentages of money is siphoned by the state and instead of getting invested to make new markets.

Therefore, the state is forced to change the way it operates. However, by doing so… the NRM and Museveni will have to drop cronies. That is something it cannot afford, because they are to eat and not to make the Republic better. This state cannot sustain itself …. and it’s own fault that it defaults on loans. Nevertheless, the citizens and the taxpayers are the first to be hit by this. Not the ones who has issued or taken out the loans over the years. They are the ones that has to fix it or for generations pay the Chinese for ordinary services. Because, the current regime wants SUVs and envelopes to cover for funerals or pay for medical tourism. Peace.

Opinion: 7 years down the line and the China Exim Bank loan to upgrade Entebbe Airport can become a liability

“The State Minister of Finance, David Bahati assured the legislators that the implementation of the project will be monitored to ensure the funds are properly utilised” (The Observer – ‘Parliament endorses Shs 680bn Entebbe Airport expansion loan’ 30.10.2015).

It is now evident that the Government of Uganda and the National Resistance Movement (NRM) might struggle with a loan it took out in March 2015 from the China EximBank to fund upgrades of the Entebbe International Airport. We are now in October 2021. There was forewarnings about taking expensive and extensive loans to build and development infrastructure projects. The ones who was steadfast and worried about the rate of loans the state took out was silenced. The state had a plan and initiated with thresholds of loans the state could borrow.

Alas, the state is starting to struggle to cope with all of these loans. It is not shocking as the NRM and the state have been busy with deficit financing it’s budgets to balance it. They are operating with a higher expenses than it has domestic revenue. So to go from red to black the state borrows vast sums from various entities, both locally and internationally. These are taken out with interests and with that… the debt burden is ballooned and at one point… the creditor will either ask for the collateral or make an agreement to cover the funds to cover the defaulted debt. This is what that could happen to Entebbe International Airport…..

Here is how the story went…

How the loan was made:

“On October 8, 2014, Uganda’s Civil Aviation Authority (CAA) and China Communications Construction Company (CCCC) entered into a contract for the up grading and expansion of Entebbe International Airport (Phase 1). To access funding for the project, the Government of Uganda (GoU), represented by the finance ministry, signed a concessional agreement with EXIM Bank of China dated March 31, 2015 for the principal amount not exceeding Renminbi 1.26 billion (about $200m) and interest to be charged at a rate of 2% per annum” (Africa Tembelea – ‘AG Muwanga raises queries on Entebbe Airport Expansion’ 12.01.2019).

How CAA looked at the agreement in 2019:

“Current overall progress for the upgrade and expansion of Entebbe International Airport is at 52 per cent as opposed to the planned progress of 55 per cent. This is commendable progress. At one point in time, there was a delay in release of money from the Exim Bank of China to the contractor (CCCC), which led to a slight delay that has since been resolved. There was a difference of opinion between Exim Bank and the Government of Uganda on the loan agreement clauses. This necessitated the Government of Uganda and Exim bank of China to renegotiate the terms. This was done and the matter resolved amicably. The contractor has since increased resources committed to the project including manpower and equipment. The rainy season also affected works” ( Dorothy Nakaweesi – ‘Renegotiating loan terms slows Entebbe Airport expansion’ 03.06.2019, Daily Monitor).

Xinhua reports:

“Under the Belt and Road Initiative, construction works started in May 2016 after Uganda acquired a 200-million-U.S. dollar loan from the Export-Import Bank of China (China EximBank). The project is scheduled to be implemented in two phases, said China Communications Construction Company (CCCC), which was contracted to design, construct and manage the project. The first phase, with three-quarters finished, involves construction of a new passenger terminal, a new cargo complex, and upgrade of two runways and their associated taxiways, rehabilitation and overlay of three aprons. “For the new cargo building, it is about 10,000 square-meters and when it is finished, it can handle 100,000 tons of cargo per year; for the new passenger terminal building, it is about 20,000 square-meters (and) can handle 3 million passengers per year,” Li Qinpu, CCCC project manager told Xinhua in a recent interview” (Ronald Ssekandi – ‘Feature: China revitalizes Uganda’s aging airport to carry more int’l traffic’ 15.10.2021, Xinhua).

Brian Luwanga tweeted today:

“EXIM Bank of China can take over Entebbe Airport in case Uganda fails to pay back a loan of 740 billion shillings ,this has been unearthed by COSASE while meeting Finance Minister Matia Kasaija. The loan was advanced to Uganda for upgrade of Entebbe Airport” (Brian Luwanga, 28.10.2021).

It is now a shot that the state promised was safe and would be able to liable for. The state said it would be able to repay the Chine EximBank and service the debt. However, it now seems likely the state is failing to pay back the loans. This means the state is defaulting in it and depending on the agreement. The creditor will have power to cover the debt from the debtor. In this instance, the state has to give collateral or any other sort of value, which will practically cover the lost debt and get returns on the loans issued.

This here is a sad story, but they could have done things differently. Even MPs and some said the state should use other sources to raise the funds for the upgrades of Entebbe International Airport. There was one MP who said the state should borrow this from the NSSF to cover it. Alas, that wasn’t the case and now we are here.

We shouldn’t be shocked at this current rate and with the trillions of shillings of debt. The debt isn’t only the amount you get directly from the lender, but you will also pay additional fees and interests. Meaning the loan isn’t just the fixed funds, which the debtor is receiving, but also the costs of servicing it too. That is what the state has do to when it takes these sort of loans and financial instruments.

The general public should worry about this. Because the state has taken out so many loans and these could it easily default on. The state needs domestic revenue, but is running on huge burden of running costs. While it doesn’t have a growing economy or financial structure to cover the deficits. That’s why the state has taken out loans to cover these expenses and this is why they are defaulting on it.

This was inevitable and the state has to restructure itself. Also, ensure it only has expenses that it can cover and just continue to add debt until the sky. Now the rainy days are coming and the loans taken out in recent years will come to haunt the state. This will hurt the state even more and the spiral of depreciative loans will eat up the budgets, which it is already doing. The rate of paying down on it will be destructive, unless there is a sudden miraculous change of financial fortunes. Alas, await more tragedies like these, as the Entebbe International Airport is the top of the ice-berg. Peace.

Opinion: AOC’s Stunt 101

Congress Representative Alexandria Ocasio-Cortez have stirred a lot of controversy for wearing a white dress with the text “tax the rich”. That was done at the Met Gala of 2021, which is where all the celebrities and the rich is gathering. They are wearing fashionable clothes and showing themselves off, as they paying 35,000 US dollars just to partake in it.

The Met Gala was on 13^th September 2021 and since then in political circles the dress has been discussed. That is all natural… however… she is not winning by doing this. Unless, she wanted headlines and get traction online. AOC is being discussed, but not in the manner of which she wanted.

It is just hypocrisy. This is the definition of weak-tea. The rich, the wealthy and the 1% wouldn’t be afraid with this. They are not scared or feels the out-of-touch demonstration. The only thing AOC is succeeding is to waste her time and her role as a legislator.

If she believes in the cause and wants to make a difference. AOC should assemble the squad. Pressure the ruling Democratic Party in Congress and get legislation passed, in which the rich will be more taxed. Make it in manner where the IRS will actually repeal the loopholes and the possibility to pay practically “nothing” while earning billions of dollars. That is what she should do and she have the opportunity to as well.

It is not like AOC is a lone activists and doesn’t have power. She is in the Squad and that’s supposed to be progressive. The Squad and it’s members are supposed to make difference. However, it has been a lot of hot-air and very little actions. That’s why this is a publicity stunt and nothing else.

AOC should put forward bills, motions and such where the taxes are aimed at the upper-class, the billionaires and the 1%. However, if she does that… she will have to battle the corporate-Democrats in combination with business-friendly Republicans. So, she will have no friends doing this and it will be a minority. Nevertheless, it would be a better look to come with an ironclad bill and tax regulations to change this…

The dress is just a stunt. It is as briefly cool as G Unit music-video “Stunt 101” and when 50 Cent drives the car straight out of the window of the car dealership. Just as you remember that and catches the speed. The same is what this dress does…

However, AOC have such more power and ability to do something about it. Instead she is writing motions sending congratulations to Bangladesh’s 50^th Liberation Day. That doesn’t cost the state anything and neither is it controversial. But to fight for a just reform of taxes will be and that will target the individuals/corporations who funds the political parties. This is why it’s a bit hectic to do so and they are earning fortunes on the misfortune of others. That’s why this isn’t changing and it’s easier to come with these acts of self-importance compared to actual acts of work in Congress.

She should call the Squad and pressure Nancy Pelosi to an inquiry and make a taxation reform. We know that will not happen and it’s so simple to just show-up in dress at a Met Gala, instead of pushing legislation through the chambers of Congress. Peace.

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.