MinBane

I write what I like.

Archive for the tag “Prof Emmanuel Tumusiime-Mutebile”

The National Coffee Act of 2018: A sour cup of Coffee or just another Robusta?

It is hard to see any significant change of the Uganda Coffee Development Authority, as the law of 1994 is planned to be repealed, as the Cabinet accepted a new bill yesterday at the State House. Let me explain, It would seem more reasonable, if someone leaked the text of the law, but the short tide bottlenecks of information leaked. That information is showing, that it is more of the same. Just some new buzz-words, to keep the donors buzzing.

Since the UCDA are already in charge of monitoring, pricing and promoting coffee, both internally and externally. They are supposed to help raise the quality of the coffee and educate farmers, both in production of better coffee, but also raise the yields for the cash-crop. The UCDA is rally a state organized body in both education, trade and promoting of coffee. Where all parts of the transaction from the seedlings to the trade of the ready beans has been in connection with the government body.

That is why the Cabinet decision that is released to the public, the one page dossier, as the law and the new provisions aren’t out, but if these footnotes are the realization of the changes from 1994 to become the new law in 2018. There are really just putting in the word sustainable and harmonize the roles of all the roles. Which is fancy lingo, for making sure everyone along the line is taxed and made sure they pay for the government services. Since they are already having the mandate by the law of 1994.

As sub-section 4 in the UCDA Act of 1994 states:

The functions of the authority shall be— to issue certificates in respect of the grade and quantity of coffee; to register in accordance with guidelines issued by the Minister, from time to time, on the advice of the board, all organisations and bodies applying to market coffee; to liaise with the Bank of Uganda in respect of repatriation of foreign exchange obtained from the sale of coffee; to set the quality control standards under which coffee is sold; to certify all coffee exports; to collect, maintain and disseminate statistical data in respect of all aspects of the coffee industry; to advise the Government on the mechanism for determining the minimum price for the sale of coffee; (h) to monitor world market price changes and adjust the minimum price on a day-to-day basis to reflect the changes; (i) to research and make extension arrangements through the Ministry responsible for agriculture or any other organisation established in the country for the purpose; (j) to reconcile coffee subsector policies with the macroeconomic policies of the Government; (k) to liaise with the International Coffee Organisation and be responsible for the administration of the stamps of the organisation; (l) to liaise with other international organisations and promote Uganda’s coffee on the world market; (m) to be responsible for the overall supervision of the coffee subsector, including related industries, and advise the Government on coffee subsector policies; (n) to organise training for technicians, coffee processors and quality controllers” (CHAPTER 325 THE UGANDA COFFEE DEVELOPMENT AUTHORITY ACT, 1994).

So when I read from the spreadsheet from the Cabinet meeting at the State House, where the gist is to replace the 325, because they want to development of competitive, equitable and sustainable coffee, promote Coffee research, good Coffee farming practices, domestic coffee consumption and add value to the Coffee. Also, provide the Authority regulate all on-farm and off-farm activities in the Coffee Value Chain, streamline and harmonize the institution in the development of the Coffee Sector and to promote the Coffee sub-sector.

As what I see, the UCDA Act of 1994, not only hold the grabbing hands on all of this, but the mandate of the Authority is already, just not managed well, apparently. If the state cared about the Authority, they wouldn’t lack needed staff, as the Auditor General Report of December 2016, said the staff had 29 open positions, I don’t know if its as bad today, but wouldn’t be shocked if there was openings that the UCDA couldn’t fill, because of lack of funds.

What is striking to me, is that what the Cabinet Meeting of 21st May 2018, is what is in the statute of 1994. It just using a few different words, but if they cared about the UCDA, they would fund it properly and also actually have proper oversight of the operations. As the UCDA has often given away bad seedlings to Coffee farmers, in the same fashion as the Operation Wealth Creations has to its SACCO’s around the Republic. Like the Auditor General report of December 2016 says: “ Failure to plant and maintain coffee seedlings that were distributed and received by the farmers is wastage of Government Funds and eventually leads to failure to achieve planned coffee outputs at national level. Further, beneficiary lists withfarmers that never received inputs may be an indicator of irregular dealings on the part of seedling suppliers” (AG Report on UCDA December 2016, P: 19).

Therefore, the changing of words within the law is not fixing the remedy of the goodwill to generate more coffee and better yields. It is actually giving the king, what the king needs. That is not more fancy lingo, but actually actions and funds, also accountability, so that the farmers and the other part of the coffee production chain. Can all benefit from the Authority. On December 2017, the MoFPED delivered the National Budget Framework, which said this: “Continued implementation of the Coffee 2020 road map aimed at achieving 20million bags of 60Kg each per annum, including supporting research interventions at the National Agricultural Coffee Research Institute (NACORI) to produce high yielding coffee varieties and disease resistant tissue culture plants for coffee as well as development of a National Coffee Bill, 2017 that focuses on developing the entire coffee value chain and enable the country consolidate its dominant position in export earnings and employment” (MoFPED, P: 18, December 2017).

Therefore, the Cabinet meeting has initially decided to follow the guidelines of the National Budget Framework, as it was in December 2017. That is not surprising, but what is weird is the wording and how little change it is from the original law, that they are repealing. Unless, they have some magical formula sprinkled over it, making it a beautiful cake, instead of a boring bun with a little whipped cream. Because that is what it seems.

If you read the objectives of 1994, it doesn’t seem so far away from 2018, does it?

The objectives of the authority shall be— to promote, improve and monitor marketing of coffee with a view to optimising foreign exchange earnings and payments to the farmers; to control the quality of coffee in order to ensure that all coffee exported meets the standards stipulated by the contract between the seller and the buyer; to monitor the price of coffee in order to ensure that no export contract for the sale of coffee is concluded at a price below the minimum price; to develop and promote the coffee and other related industries through research and extension arrangements; to promote the marketing of coffee as a final product; (f) to promote domestic consumption of coffee” (UCDA Act of 1994).

That seems a lot like the spreadsheet of the Cabinet from yesterday, right?

Its only the value chain and add value on the coffee that is very new, but the rest more of the same. I am baffled or even shocked by this. It is like the Cabinet haven’t read the old bill or cared about the provisions there and thought. Maybe we should have better oversight of the Authority, instead they are changing wording and thinking that is magic wand to change the current predicament. If they wanted real change, they would have reformed the organization internally and used the provisions already there. But it is easier to make a leaflet, than change people’s mind and allocate funds.

Good morning and smell the coffee, well, I smell it, but more of the same. Just attached “sustainable” on the package, but taste is the same as yesterday. Peace.

The Spreadsheet of the aka National Coffee Bill of 2018!

Advertisements

Opinion: NRM, It is hard to see Middle-Income Status coming quickly!

He explained that the NRM manifesto is anchored in Vision 2040 and the second National Development Plan. It commits to deliver Ugandans into middle income status and to ensure sustainable development” (Mubiru, 2018).

Well, it is that time of the year. To prove the National Resistance Movement (NRM), that their empty promises. Because when you collect the news together. It is easy to see how things doesn’t add up. If the NRM was on their way to sustainable development, like Prime Minister Ruhakana Rugunda talked about earlier last week. Then all of the news coming wouldn’t fit. The narrative cannot be growth and development, when all of these issues are happening at the same time. It doesn’t fit. The glove has to fit the hand. The three things that doesn’t add up is the missing funds for the Presidents own Village Poverty Program, relief food for Karamoja and also a missing sugar factory.

Village Poverty Program:

State House has said it needs at least Shs 5bn to roll out the model village poverty alleviation initiative by President Yoweri Museveni. In the request contained in the Ministry of Presidency’s policy statement and budget estimates for 2018/2019, State House said the existing Shs 1bn budget for the project is too little and therefore a 500 percent increase is vital. The current Shs 1bn has only managed to establish small scale commercial agricultural farms in 21 model villages. The country, according to Electoral Commission of 2016 data, has 59,700 villages” (Okello, 2018).

Donate relief food:

The government of China has donated food aid worth $5 million (about Shs 18bn) to the World Food Programme (WFP) to support a feeding programme for vulnerable groups threatened by malnutrition in the Karamoja sub-region. More than 2000,000 people mostly school going children, infants and mothers are threatened by malnutrition in Karamoja according to official figures” (Lyatuu, 2018).

No existent Sugar Factory:

It is five years, since Atiak Sugar Factory under Haryal investment Holdings Limited was rolled out in Amuru District, to commence sugar production, but has since stalled, leaving a number of sugar cane farmers stranded. “The people shifted from food crops with hope to earn from sugar cane. Out growers are now worried that the factory will not take off in time to fully untilise the 4,000 acres planted,” reads part of their petition. Kilak North MP, Anthonu Akol who read out the petition to the Speaker said that the farmers are stuck with no factory to sell their sugarcane and questioning why the minister of Finance, Matia Kasaija, sold to them hot air” (Kyeyune, 2018).

All of these issues shouldn’t be at this state, if the state was seriously developing and on the way to Middle-Income status. There are so many issues that is missing, not only the ghosts and the added debt ratio in the budgets. This is all minor measures in the bigger picture, but it proves the lack of governance and accountability, when the state can grab land in Amuru district, but never deliver the promised the factory. As this been going on for years.

That the middle income cannot be fulfilled when the village poverty is so prevalent, that the scale is not fitting the needs. You know that the state lacks resources and well-funded plans to even achieve this. The President should have made sure and ensured the progress and at the planning stages, it this is his program, to be sure about the right amount and needed facilitation to deliver to the needed villages. That is apparently a mixed bag wooh-ha and nonsense.

Last but not least, is the donating of food to Karamoja, which in it self a sign of lack of progress. When your not able to meet the needs of your population and have good enough agricultural policies and output to feed yourself and your own kind. You know that the Middle Income Status is far-fetched, when this is still an issue. You know there are miles afar from the promise land. That the NRM and the President is clearly not delivering. There is no excuse in the book, that can fix the grandest issues of not being able to feed all communities and districts of Uganda. You know they are far from Middle Income, when China has to donate food to you….

Enough of the nonsense. Peace.

Reference:

Kyeyune, Moses – ‘Acholi sugarcane growers seek Parliament help over stalled factory’ (16.05.2018) link: http://www.monitor.co.ug/News/National/Acholi-sugarcane-growers-seek-Parliament-help-stalled-factory/688334-4565238-ueostj/index.html

Lyatuu, Justus – ‘China donates relief food to Karamoja’ (19.05.2018) link: http://observer.ug/news/headlines/57707-china-donates-relief-food-to-karamoja.html

Mubiru, Apollo – ‘NRM Manifesto: The road to modernity’ (18.05.2018) link: https://www.newvision.co.ug/new_vision/news/1477948/road-modernity

Okello, Dickens H. – ‘Shs5Bn Needed for Museveni’s Village Poverty Alleviation Program’ (21.05.2018) link: http://chimpreports.com/shs5bn-needed-for-musevenis-village-poverty-alleviation-program/

Opinion: Every crony wants to eat; now the Ex-MPs wants a grander treasury chest!

The National Resistance Movement (NRM) is something special and unique, their supposed vital role in society and their added liberation struggle, should in consideration make sure the society was better off after their reign, not being a burden after the NRM MPs leave office. However, they are just figuring out new ways to eat. Now the fallen MPs, the ones who served and had a majestic pay in Parliament want a bigger slice of the cake. Because getting 30 million shillings in pensions isn’t enough for this big-shots. They need more, they we’re representatives and honourable, they cannot go back to ordinary life after that.

The reports that they are poor and unemployed, shouldn’t make Museveni give them favors, he already have over 163 Presidential Advisors, a Cabinet reaching over 60 ministers and the space inside the Parliament isn’t big enough for everyone staying there at a Plenary Session. Therefore, this is just another waste. This is just more greed, from the previous Members of Parliament, who most of them at one point gave more salary increases and perks for themselves. Every single parliament of late has done so. They are getting suits, they are getting cars, they can spend allocated funds on foreign trips, they are paid for if they need health care abroad. Nothing is untouchable for these fellow brothers and sisters.

Now they expect to get a 100 million shillings add-on from the President, in way of a Presidential Handshake, paying them off, as you may, because of their previous engagement. Not that the ones now are getting the same, they we’re getting extra funds for voting on the age-limit and giving Museveni life-presidency. These people most likely we’re part of abolishing the term-limits and go their kick-backs for that.

That is why NRM is so special. So unique, so vibrant and fresh, it is the testament of greed. They we’re while in office, eating millions upon millions and getting kick-backs for voting correctly on the right laws. If they had been smart, they would have put the extra in the bank and in funds. To secure wealth for the years to come, if they cannot go into the private sector or get other jobs in their own districts. However, they we’re busy eating like there is no tomorrow. In addition, even when they have a giant pension package compared to the fellow citizen, they expect to nearly triple it. From 30 million shillings to 100 million shillings. That is insulting, to everyone else in the Republic who goes from hand to mouth.

They we’re supposed to represent the district, the people, the citizens, but their actions, time and time again. Shows, that they we’re only there to represent themselves and their tummy. It is a sad affair. It shows the greed and the lack of understanding of their role in society. Their lack of acceptance of their part of the play, which they anticipate to eat even more of the state. That has already doled dozens of millions on them, when they were representing.

Now they are just citizens, they are not honourable anymore, I am sure that the President can appoint enough advisors to have about 200 of them within next year. To fill the quota of former MPs. However, what they guide him about, expect being another crony on his payroll. Who knows, maybe they can all become deputy and chairpersons under the RDCs. So they get something to “do”. But that is still just a waste of public resources, just like giving them triple salaries. They shown now that they are not there for the public, but was there their tummy!

National Remittance Movement, that is the real NRM. Transmit funds from state reserves to private accounts. Handshakes, bribes, graft or overzealous pricing on government services. All of come into play and these former Members of Parliament knows that perfectly well. Peace.

The World Bank commends the rising taxes in Uganda!

Yep, the biggest bank and the Bretton Woods Organization called the World Bank has commended the works of President Yoweri Kaguta Museveni and his plans for added taxes. That comes from the similar institution like International Monetary Fund, that ordered Uganda to follow the Structural Adjustment Plan (SAP), therefore, the IMF that fixed more privatization without lacking investments. Are now okaying a higher rising taxes on the Republic’s citizens. This is done, while the economy is not strengthen, but with added external and internal loans. Therefore, the rise of GDP and use of loans, as well as repayments on those loans will sooner or later hurt the economy. Even with the rise of taxes. This will be start of vicious cycle where the state is issuing loans and taxes, while the revenue is used to repay loans, not development. It is basically. But before I go into the deep of the part of the troubling take from the World Bank. Let me just show you quickly the result of the SAP and their advice there.

The studies also make it clear that for SAP-type policies to have a chance of success, certain preconditions are necessary. The public sector had certain social responsibilities that the current framework has pushed it out of but without “a proper handing over” to the private sector. The assumption and hope were that the market would fill the gap left by the retreating state. Clearly this has not happened. There is therefore need for Government either to retain certain key social sectors, or only hand them over to the private sector only when the latter is ready to effectively take them over. Clearly non-profit making aspects of social responsibility cannot and do not get taken over by the private sector. For poverty to be reduced there are certain social responsibilities or even whole sectors that can only effectively be handled by the public sector. Welfare systems and subsidies to farmers in the developed world attest to the need for the retention of these key areas by the public sector. Therefore a policy that proscribes such a hand-over must also ensure that it is done in a verifiable manner so that the private sector can be held to account. Civil society has in the past tried to fill the gap but this has been done in an ad hoc manner” (Kevin Akoyi Makokha – ‘STRUCTURAL ADJUSTMENT PARTICIPATORY REVIEW INITIATIVE (SAPRI) – UGANDA COUNTRY REPORT: A synthesis of the Four SAPRI Studies’ September 2001).

So, when the last system from the World Bank and IMF was introduced the system and the government wasn’t ready to privatize, however, that didn’t stop them or the government to do so. Especially since the funds and loans at the time came with the hitch of doing so. Therefore, the troubles with the privatization and the lacking oversight is also partly because of these programs subsidized by these organizations. That is why the World Bank and IMF should be more careful professing what sort of thing would be genuine and sincere, since they have messed up before. It isn’t only the State House who has messed up, he has gotten help and followed the procedures of these mechanisms. If not, he wouldn’t be able to eat such vast amounts of donor funding in the past. This is well-known, but the lack of oversight, is because of the will of wanting to have control and a say in everything. That is why the letter from the President to Minister of Finance, is the reason for the new levied taxes. So, if you wonder why I have distrust to the World Bank and IMF, it is because of their history and that the public is paying for it, because their impact on the governments for the reasons. That these states should be guinea-pigs for the economy belief of trickling down economics, even as the results has begged differ if it really drips back into the system again. Which it doesn’t because the ones that gets a lot want to keep it and get some more. No dole it out to anyone they can find.

Here is what the World Bank stated today: “In the special section of the Update, the report analyses how Uganda could raise more domestic revenues to support its development. Uganda’s tax system is one of the most modern in the region, but revenue collections, at 14 percent of GDP, are low, and way below its tax potential. Tax avoidance and evasion, partly resulting from generous tax exemptions to investors, weak tax administration, and a large informal sector (now at 80 percent), pose challenges to increasing revenues. Up to 5 percent of GDP is lost annually in tax leakages. Personal income tax contributes roughly 18 percent of GDP compared to up to 40 percent in developed countries. VAT collections amount to 4 percent of GDP, but would rise to 6 percent if there were no exemptions. The report suggests that Uganda could widen its tax base by tapping into areas that are outside the tax net; applying tax instruments correctly and fairly; improving efficiency, transparency and accountability in tax administration; and delivering better public services” (World Bank – ‘Improving Taxation to Finance Uganda’s Development’ 15.05.2018).

Therefore, the World Bank likes the idea of adding more tax on the Mobile Money transactions and the movement of digital cash, as well as on Airtime and other needed things. The ones that hasn’t a bank-account or the ability to fund or even try to get a loans from the banking system. Are okayed by the World Bank as possible targets for taxes. This isn’t transparent, but making it more expensive to be poor, as the rates to transmit and the use mobile money will come. The companies whose use this method will bill the users, they will not take the hit. The same with all the traders and the importers of all the other items that was on the lists of the newly taxed items.

I doubt these new taxes will do any good, it will just be more funds for the elites, the NRM and the President to eat. They are not delivering government services with the trillions of shillings they are using now. They are billing up to their asses and spending rampant, without having the revenue. That is why the rising debts are there. Instead of living frugal and thinking of the future, the NRM and President Museveni are eating like there is no tomorrow!

State House, the President and the Cabinet are eating heavy, they are not delivering, they have no plans to do so. If so, they give locally when needed, but the lack of transparency and accountability, is the reason for missing funds. Recently even the documents from the GAVI Funds was taken from the Ministry of Health. Therefore, a government who cannot be trusted with funds giving donations to help the sick, how can we believe the tax put on Mobile Money will go to roads or teachers?

I doubt that, I am not that naive, this NRM has proven for 32 years, that they are eating and not caring. The World Bank can commend and praise. While I condemn, until they prove that they money are delivered to the schools, that the teachers have their salaries and the civil servants are properly paid. Not just hiring some random Cubans to fix the issues for a short time. That is not how to build a national health care system. That is how to mock the ones you already have. Peace.

UCC: Lifting of ban on sale and replacement of Sim Cards (08.05.2018)

Telecommunications, Mobile Money and Cooking-Oil is hit by new taxes in Uganda!

You know there fiscal problems within the Government of Uganda (GoU). The GoU is on the rocks, as they are establishing more loans, more interests to pay and has leveraged their forex exchange, when they are levying today’s amount of new taxes. This is coming as reports of lacking hiring for the Civil Service, The Ministry of Public Service has suspended hiring of new positions in the districts and at the government institutions. This is happening, as the amount of cronies around the President is growing. Therefore, the wastage of funds are in and around the President, who can pledge funds as he wishes and give Presidential Handshakes to whoever he likes or needs. Therefore, today is sad day for transparency, as the state is eating itself, but not taking care of the needed services.

We know the state is poor, when the lacking banking-service and with the need of Mobile Money and Airtime on the Cellphones are getting hit by a tax. This is not social media tax, but is that the subscriber and user of the services, will get a withholding tax of 10% on transactions on Mobile Money and Airtime. This means, every time a Ugandan or someone buys airtime, in the price they are paying an added 10 % on the total price of the usage of minutes of airtime or making the transaction of funds between two funds more costly. This is really hitting the breadwinners and the ones who are servicing mobile money from the towns to villages.

Just to prove to how much the added cost on the Mobile Money is wished, as the withholding tax, they are adding direct also the excise tax on this from 10% to 15%, that means the added is 5% more on each transaction. If that isn’t excessive, just think about the two other taxes as well. Therefore, the state has added three taxes on using the phones. The citizens will have to plan more transactions, as they are more costly and will be less transactions of the amount, since the tax will shave off the amount of shillings sent to the fellow they wanted to give needed money through these services.

They are adding even more on every telecommunication services, not just the hit of withholding tax on it, but they are even adding an excise duty on it as well, meaning there are two pieces of taxes put on the same services, but at different times. Making the expenses of using the cellphones, hitting the roof and the value of the airtime dwindles, as you are paying more tax on each minute use. This excise duty is put on the level of 12% as well. So, expect the prices on airtime to rocket, as this hit both the agents to pay more tax on each, and also the cost of actually calling too. This is funds that the Telecommunication Companies will get back from the consumer, meaning citizens will pay more being in touch.

As they continue to give price hikes on necessities, they are putting a levy of 200shs on each liter of cooking oil, this meanings the price for making rollex or banana-pancakes will go up. Since before you buy the eggs and the flour to make your dish. You will pay more for each bottle, while the state gets simple taxation on this single item. It might seems pointless, but all fried foods will be more costly to make and a Samosa will cost more to make, therefore, expect a price hike on the hawkers foods in any stage where you waiting.

These are just some of the measures done by the state, there are several more, but this is really hitting the average citizen usage of phones and also cooking. This are just two items on a long lists of new taxes put on the people. Clearly, the state see the need for spikes of prices, growing inflation and lack of monetary control to come, as the chickens come to roost and the costs of debt services is hitting the fan.

The ones that has to pay for that, isn’t the elite, but all of the citizens who spends time outside their homes and buys into services. Which, means all of them. Peace.

The Creations of districts: Shows growing expenditure, not only at Parliament, but also at local level!

Local governments are supposed to be financed with 30 per cent of the national budget but this has never been possible; sometimes it is as low as 15 per cent. This continues to stifle service delivery,” said Mr Cuthbert Felix Esoku, the Mbarara District chief administrative officer” (Mukombozi, Rajab – ‘Government lacks political will to improve district funding, say local leaders’ 09.11.2017, Daily Monitor).

Sometimes I wonder, if the government understand what it does, or if the sins of the 9th Parliament is hitting the 10th Parliament hard. Also, that the President is lax on caring, because he wants his cronies well off, just like former Prime Ministers and Vice-Presidents are getting 20 million Shillings Yearly as a Pensions, without the perks they are getting too. Therefore, the silence from them, as they are highly paid without doing anything for the NRM. Their ills and the growing Local Government is costing. Not only in Parliament, but in the districts itself. Today, the issues of Parliament is hurting, but none is addressing the local issues. Which is the reason for the lack of money and needed supplementary funds for the Members of Parliament (MP). Take a look!

Parliament is seeking Shs 3.3 billion for the emoluments of twelve more legislators starting July 1, 2018. According to the parliamentary service commission, the number of MPs will increase from 453 to 465 at the start of the of 2018/2019 financial year when new districts and municipalities come into effect” (URN – ‘ Parliament seeks Shs 3bn for 12 new legislators’ 22.04.2018, The Observer).

I am amazed about the amounts of districts and the rise of cost. This not only the share Members of Parliament, the lack of space for their seats and the possible rebuilding of the Chambers. Because the amounts of MPs wasn’t built for this amount of people at the same time. Therefore, the Parliament needs funds and budgets to fit. That says the foolishness of the new districts in that regard alone.

We know, by recent news that the state cannot afford to hire civil servants to Local Government that as is, and that is without the new enclaves or districts created by the state. That is not just the salary of the MPs whose recently elected, while the Electoral Commission are stretched in getting the by-elections and the MPs their seats. That is just beginning, as the growing debt and the interest are growing. While the Parliament is lacking space and the infrastructure and the local hires are not there.

That the state has under President Yoweri Kaguta Museveni gone from 33 districts in 1986 to about 136/7 after 1st July 2019. Which was ushered in July 2015, a year before the General Election 2016 and fitted the needs of the National Resistance Movement and keep up with pledges made by the President. So every single town is a District and none is inter-connected it seems. Every hill and top is Sub-County. Just the way NRM Regime like it.

In 2017, the Parliament gave a tender about 260 Billion Shillings to ROKO to build a 500 seat size of chambers there. So the payments and monies are there, when needed, as the state can configure and find money for this. But they are usually lacking funds for the civil servants and for the ones serving in public offices in low-level positions. Even not hiring the needed ones in the districts, schools and so on, as there are thousands of jobs that the Ministry of Public Service is not allowed to hire by direction of Keith Muhakanizi, the Secretary of Treasury said there was no funds for that.

But now, suddenly, just like there is funds to athletes, there are funds for new MPs. This is happening as the new possible Social Media tax and also the Tax on Mobile Money. So not like they don’t have projects to use it on. It is all of them districts that needs mansions for District Police Commanders and Residential District Commanders, who all need a palace to live in. Also the need for a local government building and facilities, they cannot run the district from a shack. If that means all citizens has to bleed, that is okay, they deserve this cronyism.

This is the pile of bills made by the amounts of districts, the running costs isn’t just the 3 billions supplementary for the MPs there, it is the new civil servants, buildings and develop these districts. Unless, they want to be ghosts on the paper like schools, teachers, students, refugees, roads and development projects in general.

So, if you don’t see the issues I see, then your either in on it or your just thinking. Its a lost cause, because the President is ushering it in and sanctioning it. This to feed off his cronies and making sure they get jobs locally. Instead of building good districts, he has just chopped them in two or made new ones. So the development and local changes can be made right before elections. That to secure his own candidates for the Parliament too. So for the President its a win-win.

Nevertheless, this has clearly stretched the budgets, the need for public officers and civil servants, as well as more appointed local leaderships. All of these needs salaries and pensions, which means the grows and becomes more expensive with the growth of expenses like these. This is happening at a rate and time, as the growing debt and interest rates are rising. Therefore, the negative affects of it all needs to be put in perspective. However, that is not interesting to the NRM as they cannot question their king, without insulting his intelligence or his will of staying there. That is shown too…

Well, this was a bleak and sad story, but needed this perspective, since the cost of 136/137 districts should be discussed, not only the cost of MPs and the cost of building a new chamber at the Parliament. Peace.

Uganda Bankers’ Association: Position of Financial Institutions under the UBA Umbrella Notices Recieved from URA to Obtain Information of all Account Holders (08.04.2018)

Prof. Tumusiime-Mutebile: Bank of Uganda is Soundly Managed (05.04.2018)

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.

Post Navigation

%d bloggers like this: