President Museveni proposes a Social Media Tax: Good luck enforcing it!

I know that President Yoweri Kaguta Museveni will not go door-to-door getting the cash-in, he will not issue the tax directly or levy the tax on each single individual who is on Social Media, but his letter to Minister of Finance, Planning and Economic Development Matia Kasaija on the 12th March 2018 on “Re: Lack of Seriousness in Tax Collection”. That is the letter that propose to task some taxes on Twitter, Facebook and WhatsApp. Where every single user of these are paying 100 shillings each per day. That is specialized task to gain huge revenues for the state. This is really to secure more funds to the Republic.

That President Museveni hasn’t thought this true, but will he get the names, does his CMI knows all who has WhatsApp, Facebook and Twitter, do they know how much these are used? Will these taxes be put when they are used and not levied the other days. The Uganda Revenue Authority, needs a mandate for this sort of tax, because this is also the privacy, since these are programs that people download on their free will. Not all have these. Is his plan to pay a 100 shillings for each days, so if you have three apps, will you pay 300 shillings per day?

This sort of ideas opens wormholes, is it that the Republic of Uganda, will through the Uganda Communications Commission (UCC), National Identification and Registration Authority (NIRA), Uganda Revenue Authority (URA), Ministry of Finance, Planning and Economic Development (MoFPED) and Ministry of Information and Communications Technology (MICT). Should all be involved in finding he ways to levy these sort of things. Should they get all the companies who are servicing these apps to put a pay-wall that you have to register to pay each day you enter? Is that the sort of plan?

That the MICT, MoFPED, URA, NIRA and UCC are sending letters to Facebook, Google, Apple, WhatsApp, Twitter and so on. So they can figure out how to get this tax. Because it needs a technical feature, unless the CMI and Intelligence at SIU Kireka has it all. Unless, the state has gathered it all in secrecy or if the Telecom companies has this registered in their records.

You can wonder, if the MTN, Airtel or any of them has been considered here, as they are paying taxes on all the added value of the airtime, the trade of the phones. That the state is trying to do this, is to force a tax, that should be taken on directly every phone-call and SMS. That your paying 5 shillings for picking the phone and 10 shillings for receiving. Also 5 shillings for every SMS and 10 for MMS. That is the nonsense of this.

But I don’t think the President has considered the implications, neither the invading of the privacy, unless he wants to order the companies to put a pay-wall for using social media, that will have to subtracted by credit-card, mobile-money or out of the air-time. That is how it is supposed to be. But than, this is a grand-old man. Whose not that sophisticated or smart enough to understand, what he is implicating. Unless, someone is trespassing on his lawn or going to close to his cows.

This idea should be scrapped in the country, that has struggled to register the Sim-Cards and have them registered correctly. That all Social Media should be monitored and levied tax on is insane, but fits the Modus Operandi of Museveni.

Ready, Set and Bogus. Peace.

Trump’s Trade-War is now hitting East Africa: Because of possible lost trade with Second-Hand Clothes!

Museveni buying shoes in Wandegeya, 02.06.2017.

United States of America is really just cherry-picking the world right now, they are evolving into a beast and not an Uncle Sam. President Donald J. Trump don’t like to have friends, unless they are related or Roger Stone. That is now seen with his recent activity, not that he knows of these countries or these market. That I say, because he has no hotel or haven’t laundered money from there. The countries being hurt by his new policies are Rwanda, Uganda and Tanzania. Places he would never travel to or have consideration about. That is because in his mind, they are shitholes, but as long as they serve as vassal states for the United States. Everything is fine and dandy.

What we are talking about is this:

(A) THE PRESIDENT IS AUTHORIZED TO DESIGNATE A SUB-SAHARAN AFRICAN COUNTRY AS AN ELIGIBLE SUB-SAHARAN AFRICAN COUNTRY IF THE PRESIDENT DETERMINES THAT THE COUNTRY (SEE NOTE*)

(1) (A country that) has established, or is making continual progress toward establishing–

(A) a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimises government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets” (AGOA – ‘AGOA Country Eligibility’).

It is special that the US President is using this against these three states on the imports of used-clothes and shoes. That these three republics trying to develop their own textile and clothes industry, to create work and also revamp the economies. That would mean, that people would also earn more money and spend more money. In the end buying foreign produced clothes on the fashion-lines, that usually are branding American and European brands. Therefore, I don’t understand why Trump suddenly acts like this, when Rwanda, Uganda and Tanzania wants to secure their industries.

Because, it is not many days ago, since the President himself used rules and provisions to secure the Steel and Aluminum industry on his own soil. So, that the giant United States can control it, but their trading with other can be spoiled, because it doesn’t favor the President. Seems like double-standard to be. It is easy to muffle the poor and the ones with lack budgets, that are in need of donors. They need to stifle the demands of the powerful, but the ones with power can just use the same means themselves. Still, that doesn’t make it right.

That the United States are trying to force their used-clothes on Rwanda. Like they don’t deserve their own clothes industry and to secure better products, local designs and local textiles is insane. Why shouldn’t they strive for that? Why shouldn’t Uganda strive for their own Bata’s? What is wrong with Tanzanian made shoes? Nothing really, that should be supported, especially if the United States wants to think long-term and create better exports. They would earn even more on ordinary trade of clothes, not second-hand that sold bulk and through other channels. But I am sure that Trump has no knowledge of this or even could imagine it.

This is clearly a step of imperialism from United States, since they cannot stomach, that the partners and the ones getting donations through USAID. Isn’t accepting to be a bazaar for their used stuff. The products that is B-Level and already had their day in the sunshine.

Knowingly, how he is America First, the man himself should understand how others wants to build to their own industries, but thinking Trump has that capacity of thinking is overstepping and thinking that he could actually calculate, that others are sovereign too and not only his state. The East African Republic’s shouldn’t be punished for acting in their own interests over second-hand clothes. Neither second hand shoes. That is insulting and infuriating. If it was just charity and done out direct needs. It would make sense, but if your forcing bad products, because of own will for quick-profits and at the same time destroying local industries. I understand why Rwanda, Tanzania and Uganda is trying to ban it and stop it. I respect that and stand behind it. Who wants a old T-Shirt, when you can buy a local-made?

If you buy a local-made, it would create a job for the one making it, the one designing it and the one selling, plus the distribution within the state. That is good business and create lots of job. These jobs create other jobs and funnel money in the system. So some of them will buy foreign design and clothes, that might even be American. That is how the United States should think, if they cared about a free-market narrative, but they are now planning to punish Rwanda and others, because they want to build-up own industry.

Trump is creating a trade-war over Second Hand Clothes.

Second Hand Clothes to East Africa!

Washington, DC – The President determined today the eligibility of Rwanda, Tanzania, and Uganda for trade preference benefits under the African Growth and Opportunity Act (AGOA). In response to a petition filed by the U.S. used clothing industry in March 2017, the Administration initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility regarding their decisions to phase in a ban on imports of used clothing and footwear. The review found that this import ban harms the U.S. used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to U.S. trade and investment. Based on the results of the review, the President determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. Consequently, the President notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days” (AGOA – ‘ President Trump Determines Trade Preference Program Eligibility For Rwanda, Tanzania, And Uganda’ 30.03.2018).

This is infuriating and not cool. AGOA should be used as a method to not destroy industry in the developing countries, but add revenue both ways. Now the United States is just using imperialism. Trade-War with East African Countries.

Trump is foolish and also, this is not gaining sympathy and the reasons for this. This isn’t adding and just show how belittling and narrow-minded he is. But that we knew, we just have to see who spanks him. Peace.

Yumbe Riot: Conflicting reports, but seemingly authorities created the havoc and it got public reactions!

What can we can conclude is that the Police Force in Yumbe District has arrested about 60 people and two individuals seriously injured (some reports dead) after bullets hit the scene. The Police Force statements and the Uganda Revenue Authority statements doesn’t add-up. While the Police are saying the URA had an enforcement operation there, the URA counter-claim it and says there was none.

However, there has imports of illegal rice in this case, that created the havoc seen today in Yumbe, as both statements refers to it. The URA legal team, who encountered the boda-bodas with it, who was stoned for interfering with it. While the Police Force are not addressing directly the illegal rice, but that URA was looking at the number plates and lack of tax on the motorcycles.

Before the crowd and masses of people rioted, burning both motorcycles and a car belonging to the Danish Aid in the town. The end of the statement clarifies that the URA was there to collect taxes on the imported rice, and that the motorcycle drivers has to pay the state. Also that URA will continue this operations in the West Nile region.

The Police has said they will engage with the Boda Boda Industry and community, as of this incident. What is special, is one saying it was not paid for the motorcycle, the URA saying it was because of the lack of taxes on imports on the motorcycle. It is a small difference, but still one. We can wonder what was the truth.

What we do know, is that the Police has arrested a dozen of people and two killed, some say they were just hurt. Hard to know what is the fact. 103.2 Open Gate FM reported this earlier in the day: “Two people are reported dead in Yumbe District following a protest by youth in the area against operations of the Uganda Revenue Authority-URA. The protests were sparked by a URA operation against unregistered bodas bodas, in the event apprehending residents in the business. The operation became sour when the URA vehicle knocked down a bodaboda cyclist, making bodabodas to become rowdy by burning several vehicles prompting police to fire bullets. URA Manager Public and Corporate Affairs, Ian Rumanyika said the Authority was cracking down on unregistered boa bodas as well as those smuggles from South Sudan without reverting tax” (103.2 Open Gate FM, 28.03.2018).

So it wasn’t a peaceful initiating, as the URA Management followed and tracked the Boda Boda down. Knocked it and the Police intervened in the operation. The report of Open Gate, also say the URA was doing both, not just stopping the smuggling from South Sudan, but also look into the tags, which hadn’t paid tax. Secondly, they are saying that the URA team drove after the Boda Boda and actually knocked one down. That isn’t just fining and taking the tags, not only checking the products or rice, but actually nearly impounding it. This has been done without forewarning or local knowledge. If not this wouldn’t have happen.

So the URA are now combating illegal imports and also unregistered boda boda’s. Clearly, there have to be better methods, since this became violent, and the following after and knocking down. Was a final spark, since the URA Management created havoc on the way and than the Police intervened with guns, as the youth was throwing stones. When the violent activity transpired they addressed it with throwing stones and also burning cars.

Whatever it was, it shows the lack of oversight and the lack of basic understanding. It is natural for a state to tax imports, also serve taxes on plates, yearly pay for being able to drive on the roads. Both actions are normal, but if the URA Management did the right thing, if the Police Force did the same. Can be questioned and should be.

What should also be asked, would there be a better way to collect the missed tax and also secure the porous border points, so the Boda Boda can pay the levies when entering into Uganda again. Secondly, the URA should be able to notify the drivers of their missing payments and not knock them down for doing so.

We will see with time, if the stories are changing or if they will stay the same. However, this is worrying sight of the state of affairs. When collecting taxes becomes a stand-off, you know something is wrong. Peace.

URA: Clarification on Riot in Yumbe (28.03.2018)

Uganda Police Force Press Release: Riots in Yumbe District (28.03.2018)

South Sudan: Vivacell – “Status of Airtime and Simcard Stock in Your Possesion” (28.03.2018)

Teff-Flour Patent Belongs to Ethiopia: Sanction Roosjen and his businesses now!

It is now revealed that someone named Jans Roosjen of the Netherlands has a United States Patent on the Teff Flour, the tradition food source backing done thousands of years. Roosjen is officially a pre-historical human being, he is back-to-future, he is the mirage and the answers of all things. Since he can patent something that has been part of Ethiopian culture and their practices, without their consent and without consideration. He is not the owner of Teff Flour. The United States Patent Office shouldn’t accept this, because this is taking someones national pride and food culture and stamping their ill-gotten name on it.

This is a mockery of invention, this is cultural and staple food theft. It would be like stealing french-fries from Belgium, the Kimchi from South Korea or the Feijoada from Brazil. No one owns that invention, but you cannot patent it too. This is made for the people and owned by the people, secondly, as a foreigner you should appreciate the culture, not steal it. That is what this man has done with the Patent of Teff Flour milling. Like he invented it, he didn’t invent it, he just served a document and filing to the Patent Office. They should have dismissed it as a insane thinking of a European man, who has no ownership to the food cuisine of Ethiopia. 

Teff History:

Teff (Eragrostis Tef) is a cereal crop of Poaceae or Gramineae family with small grains. It is believed to have originated in Ethiopia between 4000 and 1000 BC [1]. Teff seeds were reported to be discovered in a pyramid which is thought to date back to 3359 BC [1]. It is a primarily cultivated cereal crop in Ethiopia with high market price and socio-economic values. Its center of origin and diversity is Ethiopia” (…) “The cultivation of teff as a major cereal crop in Ethiopia was started thousands of years ago. As mentioned in the Introduction, some researchers have indicated that teff production in Ethiopia has a history of more than 4000 years. Teff is a primarily cultivated cereal crop in Ethiopia with high market price and socio-economic values” (Daba, 2017).

Encyclopedia of Life (eol.org) states this:

Between 8,000 and 5,000 BC, the people of the Ethiopian highlands were among the first to domesticate plants and animals for food and teff was one of the earliest plants domesticated.[4] Teff is believed to have originated in Ethiopia and Eritrea between 4,000 BCE and 1,000 BCE. Genetic evidence points to E. pilosa as the most likely wild ancestor.[5] A 19th century identification of teff seeds from an ancient Egyptian site is now considered doubtful; the seeds in question (no longer available for study) are more likely of E. aegyptiaca, a common wild grass in Egypt.[6]” (eol.org – ‘Eragrostis tef’).

That Roosjen own business, which is on his page teff-grain.com, where he states: “given the fall-numbers the mixing of teff-grain or flour with other flours/seeds is patented”. That is very insane, that a man from Netherlands or Holland is thieving a 1000 year old tradition and trying to keep it to himself. That is disgusting, it would be okay if he imported it through Prograin, the company he is owns and serves, but patenting it, is taking it a bit to far.

So the Roosjen started a shop in 2004, patent it in 2006 and has forgotten the tradition of the food. It is time for the world to patent everything for Nethlands, the wind-mills and when coming to foods. It is time for Ethiopians to patent Dutch tradition food, to retaliate like Pannenkoeken, Erwtensoep, Poffertjes and Stroopwafels. Because if a random Dutch man can patent food for centuries and get away it. The Ethiopian and government, should do similar acts until the Dutch retract this nonsense. This is demeaning and insulting of all humanity. Its like patenting human life itself, Roosjen next project could be to patent one of the pyramids of Egypt. Since he could already has stolen, the pride and staple food of injeera of Ethiopia.

Roosjen, you do not own an African Cuisine, you don’t have the rights to patent 8000-year old tradition food from Ethiopia. How dear you, you should retract it and be glad to mother, that you can still import this food and the flour itself. The Ethiopian partners of yours should stop selling to you. Since, you have betrayed their tradition and their cuisine, they should boycott you and yours families business.

A Dutch Company and a Dutch Man is lucky to be able to trade the commodity, they should sanction the man. The farmers, the traders in Addis Ababa, the ones who has traded with his company and the ones licensing sale to him. Should stop immediately, he doesn’t deserve it. Because he has stolen part of the pride of Ethiopia. No one has the right to do so. No-One has the right to do so, it is insulting and demeaning.

Peace.

Reference:

Daba, Tadessa – ‘Nutritional and Soio-Cultural Values of Teff (Eragrostis tef) in Ethiopia’ (May 2017)

RDC: DP World Wins 30-Year Concession for Greenfield Port of Banana in Democratic Republic of Congo (25.03.2018)

Bank of Uganda’s Fresh report spells fear of the growing levels of debt!

This isn’t breaking news, this just facts at this point. The growth of debt is becoming a danger for the economy in Uganda. Because of the overspending and lack of donors to pledge for the needed government services, the bloated amounts of local government and the rampant cronyism. Is all combined making sure the extent of the economy gets hit, while the Uganda Revenue Authority, doesn’t have enough levies or enough taxes to gain enough for the shortfall of cash. The deficit is founded on loans, while the government are still paying interests and growing the debt ratio at a scale that is not healthy for the economy. Even if there is a future possible oil-revenue, it still has to become massive, to repay the debts of yesterday. When the amount of GDP goes to repaying and higher rates on the new loans. This is how to step-by-step killing the economy, by circling and re-issuing new debt, to pay off the old debt. Sooner or later, you need a scheme to fix it and start a Ponzi scheme to fix the economy. That is why there are ghost refugees and ghost projects to fix funding for the failing state.

Just take a look:

The provisional total public debt stock (at nominal value) as at end December 2017 stood at Shs. 37.9 trillion, representing an increase of 9.4 per cent relative to June 2017. This growth in the stock of public debt was mainly on account of a 12.2 per cent growth in public external debt (in Shillings terms), which continues to have the dominant share of 66.3 per cent of total public debt. In December 2017, external and domestic debt amounted to Shs. 25.1 trillion and Shs. 12.8 trillion, respectively, which is an increase of 12.2 per cent and 4.2 per cent, respectively, compared to June 2017.

The provisional stock of public external debt disbursed and outstanding stood at USD 6,902.7 million as at end December 2017, representing an increase of 10.8 per cent from June 2017 compared to an increase of 24.6 per cent in the corresponding period a year ago. The total external debt exposure (debt disbursed and outstanding and debt committed but undisbursed) amounted to USD 11,690.6 million as at end December 2017” (BoU, P: 16, 2018).

The present value of total public debt as a ratio of GDP stood at 28.1 per cent as at the end of December 2017, which is lower than the PDMF benchmark of 50 per cent. However, including committed but undisbursed loans, the ratio of total public debt to GDP is closer to the threshold. This poses a risk of higher exposure or failure to meet external debt obligations in case of exchange rate volatility and slow growth in exports. In addition, high debt may become a drag on economic growth by discouraging public investment due to the high debt service costs” (BoU, P: 17, 2018).

This sort of report should worry anyone who cares about the future, the growing debt is a bad sign. It is a sign that the National Resistance Movement and President Yoweri Kaguta Museveni, is putting the future at risk, because he wants to eat right now. Instead of balancing the budgets or trying to find ways to get fresh revenue for the shortfalls and deficits, instead he is borrowing for everything and with the lack of transparency, the funds are embezzled and gone in the wind. Therefore, the state can often borrow for something that only exists on paper. Which is even worse, because they are not delivering anything else than growing debt like it is a gifts. That they will not pay interests and pay it off sooner or later.

The amount of loans should worry, it really should. This sort of reports should shatter the Parliament, should reshape the government and should make the Finance Minister Matia Kasaija and Treasury Secretary Keith Muhakanizi, wish their were on a peaceful island drinking umbrella-drinks, while far away living on their pensions, and hope they are not getting a Q&A at the Plenary Session. Since this is damning and beginning of troubles ahead. Just not knowing how damaging it can be. Peace.

Reference:

Bank of Uganda (BoU) – State of Economy – March 2018

Uganda Communications Commission – Public Notice on Scratch Cards (24.03.2018)