Another look into the Mobile Money Tax!

Yet again, more things are revealing the dire consequences of the new Exercise Duty tax that the Parliament voted through. This time it shows the significant amount of money that is already exchanged through the Mobile Money, as this is the sole way of transferring it without having bank-accounts or being involved with banking sector in general. This is made for the ones who doesn’t have a local bank and needs to transfer money to relatives, friends or even to pay-off bills through the phone. Therefore, these services are vital.

This is numbers taken from the Bank of Uganda, in their fresh Annual Supervision Report. Where the rates and usage nation-wide is presented. It shows significance. Also, the massive amount of taxation it really is.

“Mobile money services

As at end-December 2017, there were seven mobile money service providers and these included; MTN, Airtel, Uganda Telecom, Africell, M-Cash, EzeeMoney and Micropay. The number of registered customers across the networks increased by 8.4 percent, from 21.6 million as at December 2016 to 23.4 million as at December 2017. Mobile money activity continued its growth, during 2017. Transaction values increased by 44.0 percent to USh.63.1 trillion in 2017, up from USh.43.8 trillion recorded in 2016. The number of transactions rose by 23.8 percent over the same period” (Annual Supervision Report December 2017 | Bank Of Uganda).

Because if the whole you of 2017, the total mass of funds transferring through Mobile Money are on the levels of 63 trillion shillings, that means that if this was taxed with the new Exercise Duties, it would be about 630 billion shillings in direct taxes on the money. That is because the new tax is 1% on every transaction. That means that the total value being delivered from one to another is slimmer, as the one percentage of the transmitted funds will be collected as direct tax. That means if someone is sending a 1000 shillings somewhere, that means 10 shillings are directly taxed and leaves behind 990 shillings to the ones receiving it. There are also other taxes, but on this alone, there is certain amounts to be eaten by the state.

If this amount of tax doesn’t stop the growth nothing will. This is sort of amount will stop the amounts, maybe even people will send less times than before. Because they have to consider the added taxes on every single transaction. They want to make sure their money goes where it is supposed to and not give a too big of a slice to the government for the usage of the mobile money services.

Clearly, the state has hit a growing industry, but instead of making it increase, these sort of measures make it decrease and the cost will be carried by the consumers and not by the banks. They are still amassing in profits and taking their costs for the services as it is. Not like the consumer is transferring the money for free. They are not in it for charity, but for profits.

So just think about the massive cost it will be with the transactions and the lack of consideration the state had when they voted it through parliament with lack of due diligence. It wasn’t only the expensive social media tax, but it is this on top of it. To earn revenue on the hard earn cash that people are transferring through their phones. Peace.

2 Weeks 2 Go: Let’s add a Supplementary Schedule No. 3 for the Financial Year 2017/18!

Today, the Parliament approved a Supplementary Schedule No. 3. for the Financial Year of 2017/2018, which is ending in eleven days or 30th June. That means the Parliament approved a new added funds to needed government expenditure and spending between 19th June to 30th June 2018. This means this funds that are approved are supposed to cover until the Financial Year of 2018/2019. That budget wasn’t approved long ago either. Therefore, it is hard to take this sort of business serious.

That the Parliament has accepted a third supplementary schedule for covering expenses until the next Financial Year. This was accepting 377bn shillings or $ 97m United States Dollars. If you shouldn’t question this, then you shouldn’t question anything the state does. Because this is really questionable activity.

How come the need of these amounts of money? Why wasn’t this covered on the Supplementary Schedule No. 2 for the Financial Year? Because if the Ministry of Defense and others who needs the added funds was serious. They would have covered this and made sure to have the funds. This is making the daily supplement 34 billion shillings for whatever purpose they professed. But it is fishy this late to add. Especially this big amount of money. Are they trying to cover the expenses for the recent by-elections?

It is hard to believe the necessity, unless they have trouble with the water at the State House. Needs more Presidential Handshakes and secure other private deals of the President. Because they need to cover 34 billion shillings each day. That should boggle your mind.

This is on top of the 1.3 trillion shillings that was put in the budget. Meaning the 1.3 billion shillings wasn’t enough. They we’re not able to plan the spend of defense in the FY 2017/18. Does that mean the recently established Budget for Financial Year of 2018/19 needs to billions too? Because the state didn’t have the capacity to plan or reconfigure the spending of other sectors?

This means the state needs the 1,677 billion shillings on the Defense in this Financial Year. That should also show how much of the state spends on this.

But I feel I am naive if these Number 3 funds getting used for food and other needed equipment for the military. Would be less shocked if it went to a By-Election or even bill collectors, that are knocking on the State House doors. Since they have been waiting for their invoice to be accepted and get a payout on the outstanding debt of the state towards them.

This here is just weird adding a supplementary funds just mere two weeks before the Financial Year end. That would be like adding more funds for Christmas Bonus just mere last Sunday before Christmas Eve. That is what they are doing. It is weird and cannot stop saying it. Peace.

#UGBudget18: Museveni – Was this a budget speech?

I don’t know where start or where to finish. As I am not a tool of propaganda and here to make the President look like super-star with a brilliant mind. Warning the media, banning Police Bond for Killers and all other spats of nonsense, which has nothing to do with the budget. It is just like he has defend himself. As President, he even attacked MPs and their attitude. They were ATMs to their voters, something he is and been called himself. He even recently tried to bribe his MP into position in Rukungiri. So that the President has short-term memory is evident.

You know he is in self-hostile territory, when one of the biggest donors and on of the biggest media owners Aga Khan gets a warning. Surely, the President cannot handle journalism and only care about praise. He cannot manage that people are looking into the growing debt. As this budget alone is 10 trillion back-pay of loans of the 32 trillions spent. While there is shortfall and growing deficit and the donor funds are still dwindling. Therefore, the need for loans to cover the shortfall is needed. So what the President is creating is a debt-trap. He can say he managed that since he used 27 guns, but different to blow former-leadership into oblivion and actually being able to repay your debt.

I am just awaiting the salute and the simple minded changes he is progressing into middle-income country, as the President is showing less intent of doing anything. He just talking about nothing and everything. Quoting the bible and acting holier than the pope, while warning everyone else. Not that it is securing anything. He will secure it all, as he is the man who has the answers. If this is getting boring, is that he has done this for 32 years and counting. And has not changed, other than his face and tenure of hair on his head.

It is like he doesn’t care and just say whatever that is on his mind. No one will fact-check or really check the relevance, because why mind. Its a deluded old man, who has been so long in power, that the ones going against are either in jail or possibly monitored by the sleeping police officers his been talking about. He is again blaming the mindset of Ugandans. Because there is never his fault. He has just been running the enclave and people gotten lazy, awaiting handouts. Not like he has delivered any of his pledges, built institutions or prosperous organizations for the citizens. That is just his lack of mindset and work ethic.

Therefore, there is no need to really dig deep into the speech. It is mere facade, a mere forged mirage of utter nonsense. A speech rampant of lies and warnings. If your a journalist or MP, you should feel offended. Because he expect to be praised, while your supposed to carry the nonsense from him.

The saddest part is that he takes no responsibility, that he has no accountability or no common sense. That this man just continuing to utter these words, like a word-salad of mockery of intelligence. While expecting that the spinning-machine of his party, his spokespersons and friendly media will make him look a giant. They will eat the crap out of it and make it look like gold, but its only fools gold. Not worth the bling its made off, better to buy a Rollex in Wandegeya, it will at least fill your tummy for a moment. Because the fools gold will be worthless and just ready for the bin.

President Museveni has no cards to play or nothing to say that changes the narrative. Only 1986ing the world and hoping he can get away with it. However, the debt trap should worry him. Nevertheless, it is the next generation that will pay-back it and he will be dead by then. Peace.

A new look into how the poorest is hit by new Social Media Tax!

Twaweza statistics published on Twitter 8th June 2018

Again, there is proof that the Parliamentary Report on the Exercise Duty Bill Amendment of 2018 was not accurate and not directed to its citizens. I have already questioned it and the lack of due diligence as the 9 page report. The report are directly saying the tax rise and reasons for issuing it. Therefore, I will again show the lowest levels civil servants. They are on salaries, not hawking for money or getting random paychecks. So their estimations are possible to do. The street hustlers will struggle with this. Even the lowest paying civil servants will as well.

By the time of November 2017, the lowest paid salaries for certain government employees are yearly about 250,000 shillings likes the U8 Local Government Workers. Others are the likes of U7 Primary School Teachers about 380,000 shillings. For the U8 Monthly salary about 20,000 shillings and the U7 Monthly salary about 31,000 shillings.

When knowing the lowest have 20k shillings to spend and the lowest teachers about 31k shillings. Because Twaweza has made a reasonable stat on the airtime spending plus the new tax. Everyone will be added 6k shillings. That means the one who has lost the most is the poorest who has about 14k before paying for airtime even. The next lowest is down to 25k and that is before airtime on the cell-phone. If you don’t like the numbers and the costs, no one should because this is huge added tax. An as long you can use and have it installed on your device, the state will take 200,- shillings per day.

All of the numbers I use is from Twaweza statistics. If you 9,900 on Airtime a month, the total cost a month on a phone cost 15,900. That is near the whole salary of the U8 and near half of the U7. Both showing that this is something they cannot afford to do. The ordinary rural spending about 7,900 shillings on airtime and total cost 13,900. even with that the rest of the salary for U8 in rural areas will be about 6,100 shillings. That cannot be enough to sustain their daily lives? It works for the teachers, even if it rough for the U7 who has 17,100 shillings left on their salary. This is just one of the new taxes, not on all the rest of the new issued too. Which all will hit the public differently.

While the lowest estimated usage now is the ones that spend 3,700 shillings on airtime, will totally pay 9,700 shillings. That is still a major part of salaries and nearly no use of the phone. The payment goes all to the Social Media Tax and not onto using the phone itself. They are overly taxing the public, the poorest will have to delete social media and save the money. Because they cannot afford to spend close to 10,000 shillings a month and close 120,000 shillings a year on being on WhatsApp, Facebook and Viber.

It is like the National Resistance Movement (NRM) don’t want to show their retrogressive attitude to the public. Where they are attacking the poorest in the rural areas.

This is all boggling me, that this sort of idea wasn’t put in the report and wasn’t considered. If the report and Members of Parliament cared, they would have considered the implications on the poorests. Even the lack-luster salaries of the U7 and U8, which will be severely hit by this.

Is this what Museveni’s revolution was all about eating of the peasants and taking their spoils, while taxing their leftovers and enriching themselves? Was that what the Bush-War was all about?

Take public for granted, keeping them poor and when the debt hit the fan. Make sure the poorest get doubled taxed. Peace.

#SOTNU18: Importing too much and Exporting too little; What could be the reason?

“Yet, as our Baganda people say, “Omugo oguli ku murirano, tegugoba engo” ─ (the stick in your neighbour’s house cannot help you to fight off a leopard)” Yoweri Kaguta Museveni at the State of the Nation, 2018 (06.06.2018).

I have stopped after a years to look and breakdown the whole speech of President Yoweri Kaguta Museveni. Because no one should waste that amount of time, unless your Don Wanyama, Tamale Mirundi or Andrew Mwenda. The rest of the random average Joe’s just shouldn’t waste our time with that. After 32 years, what new thing can he re-up and said, what sort of pledge haven’t he pulled out off his ass. Everything has been said, its just rewind of the previous years. There might something amazing, but you should doubt it.

That is why I will focus the passages on the growth to become a Middle-Income Country:

I hear so many people talk about the attainment of the middle-income status by Uganda. The main problem here is, actually, the problem of Uganda importing too much and exporting little. The GDP per capita today is US$776. To become a middle income country, you need, at least, US$1,006 per capita. This money is calculated in Dollars. Too much importing and too little exporting undermines the progress to a middle-income status. Therefore, Ugandans, please, buy Ugandan; travel Ugandan; health-wise, be treated in Uganda. The government will facilitate its part as outlines in this speech. All I have said above is about the economy that is being developed to create wealth and jobs for the Ugandans as well as widening the tax base for the State of Uganda. At the same time, this bigger economy provides more goods and services for Uganda’s domestic consumption and for exports. Your NRM, always looking ahead, has already negotiated and arranged with our brother and sister Africans to ensure the market integration of Africa (EAC, COMESA, CFTA), so as to provide capacity for the absorption of the greater supply of goods and services produced by the Ugandans awakened to realize their potential as we also buy from our brothers and sisters in Africa, as we all take advantage of the huge collective market of Africa. Besides the huge continental market we are creating with our African brothers, the NRM always never missing in action when it comes to African issues, we have also negotiated for third party market access to the USA, EU, Chinese, Japanese and Indian markets, in varying degrees. Hence, ladies and gentlemen, the NRM has addressed or is addressing all the factors that are necessary to open the gates to the Ugandans engaged in wealth and jobs creation. Let everybody, then, play his or her own part” (Yoweri Museveni – State of the Nation, 2018, 06.06.3028).

The ironies are staggering as the economic policies, the industrial policies and agricultural outputs of the Republic is all in the hands of Museveni. If the NRM wanted to have trade surplus, they would have put in work and made sure the industries, the agricultural output and the end-product that they wanted to put into the world market. That is if the NRM had actually cared, because most policies seems to be short-term and for the short-con, not even the long-con. The projects and projections are for short term gains, not building things.

The specialized boards for the promotion of Ugandan produce and products has been lacking. Also maybe that they haven’t configured to the standards of the world-wide markets. That is why the coffee is sold as beans and not locally branded robusta. It is blended into random blends of foreign corporations instead of being locally grinded and packed ready for the big multi-national supermarket chains. Instead they are sold with least profits as the produce and not as the product. That is what is wrong with the ideas of Ugandan business. They have not thought of how to get value for the produce. This is all because the business is fixated on quick profits, but not going the extra mile.

That is because the NRM have no incentive to this or to try to do it. If they had incentive and any ideas of this. They would have figured it out and industrialized the agricultural output. Neither is put in the cash and the investment to build juice-factories as promised in Amuru, That has been promised for so long, as people are giving up in Katakwi District. This is the reality.

Therefore, listening to the President bitch about the lack of modernization and industrialization of the Republic. Is his fault, as he has put in the work and the ability to change the business models. That is because the way the state does with investors and designate cronyism. Where the businessmen have to political connected and make sure to grease the wheels to get it running.

It is a nice idea to get Ugandans to buy Ugandan products. But then you have to deliver good Ugandan products to fair price, also make sure it is competitive. There are lacking issues and basic need to make sure the possible produce could create added-value. Instead the quick profit and direct exports is the reason for lack of more currency. That would help the republic and make more money without to heavy investments, while using what they already produce plenty off.

While the state has to figure out if they want this, because this could help them to gain another monetary gain. But they doubt they will, because right now, it is the short-con and the quick-fix instead of actually building something for the future. Peace.

Opinion: Taxes get levied deliberately, not by a mistake!

Again, the Mobile Money and the Exercise Duty Tax Amendment of 2018 are proven to be without due diligence. There so many aspects that is left behind. This time it comes from the Minister of Finance, Planning and Economic Development (MoFPED) Matia Kasaija. Whose now is trying hard to wash his hands from the added taxes on the public. Like it would make a giant difference between a half percentage or 1 percentage of the transaction in taxes to the state. Yes, there is a difference and the cost are still hitting the public and making Mobile Money more expensive before even spending it.

This is the proof the National Resistance Movement (NRM), how they have rushed these taxes to please the President. Because there hasn’t been enough consultation or proof of the possible outcome of it. Other than some numbers hitting the wall and hopeful earnings for the state. The state needs revenue, but will they bill themselves into more trouble, as they are hitting the poorest the most. Which doesn’t use banking services. They use Mobile Money for their transfers and use the Cellphones for their transactions. That is why is worrying for the public.

The Excuse from the Minister:

““The NRM caucus and Cabinet sat and agreed on 0.5% instead of 1%. I don’t know what happened,” he said. Last week, Parliament passed a 1% tax on mobile money as part of the Excise Duty amendment Bill. The opponents of this tax say that the 1% tax on mobile money will hurt the economy, its people and it is counterproductive. “I am sorry. I was out of the country when it was passed. I will have a discussion with the President and maybe by the time I read the budget next week, a solution will have been found,” Kasaija said” (Wamala, 2018).

It help to be on vacation. I wonder if the President did the same during the Age Limit debacle, as he traveled around the globe. While the skirmishes was happening in the Parliament. Now the Minister says the same. That he now will try to fix it. No matter if he reverse it, it will still add more cost to the consumers and the ones who needs the Mobile Money. A service that is needed, as the banking system isn’t for everyone and neither is the day-to-day lives of many able to even be parts of it. That is because the state has left these groups of unemployed and poor behind.

What still worries me, is that there are no scope of the possible effect and what it will do to the economy. If there will substantial growth or down-turn. If certain groups that is hit, will be worse of and struggle more. Then the question is, will the added revenue be used in other parts of the economy to boost their need for services or just to pay off old debt?

Because, these taxes will be felt by the amounts of people who struggle, who has little or nearly none. There are plenty of them. These will pay-off huge sums for them, because this is subtracted directly from their salaries and sales as hawkers and traders, farmers and whatnot. Just sending money to relatives in up-country will be more costly. This is clearly just sending the memo, that the digital age is in for the taking and the advantages are becoming more expensive.

This wasn’t error, this was deliberate, even if you we’re away Mr. Kasaija. You can try to save face, but its better to reverse before speaking out. This is you trying to look good for the spotlight before addressing the Parliament. That is all. Peace.

Reference:

Wamala, Maria – ‘Mobile money tax was passed in error – Kasaija’ (05.06.2018) link: https://www.newvision.co.ug/new_vision/news/1479138/mobile-money-tax-passed-error-kasaija

Lack of Due Diligence on the Exercise Duty Amendment Bill of 2018!

The nine page memo on the Exercise Duty Bill Amendment of 2018 is an insult to everyone who cares about governance. The leaked Report from the Ministry of Finance, Planning and Economic Development (MoFPED). Is really just a carbon copy of the initial taxes and rubber stamping the bill without any considerable efforts, arguments or questions to the new taxes.

It is weird that the MoFPED can get away with lax work and lack of work ethic, lack of reasonable numbers and crunches of statistics. Proof that this is actually good for society, that the new taxes on Mobil Communications, Mobile Money and Cooking Oil is of an calibre good. Alas, that is not the case, the report isn’t spelling out that. It is just saying, That it is just unfair that ones actually calling is paying taxes, but the ones using mobile data is not. However, isn’t the Telecommunication Companies already paying huge level of taxes on their profits of every sale of airtime? So now just topping it off by adding taxes on Social Media Apps and on Mobile Money? Also the VAT on the Airtime as well?

You have the tax on the airtime, tax on the profits on the airtime; you will have tax on the usage of social media and mobile money. Meaning the state gets revenue from nearly all aspects of usage of the phones. Soon you cannot open anything without withdrawing money from your account as the state is billing you extra for the top services. They are calling this “over the top service” sort of like all the benefits the Members of Parliament has and is billing on the Republic.

Therefore, reading this report, that no one questioned it or had any concern, that no one said anything or looked into the amount of usage and the cost on the cell-phone user. Neither, the added cost on the basic household for any of the new taxes. Show a unpleasant disregard for the hardships of the citizens in question. You cannot expect to be enlighten on 9 pages of a report, you cannot, because your not digging deep into a problem or a situation on a 4 page brief. Your just touching the subject matter and disregarding the issues at hand. The Parliament has recklessly added this taxes, as the President ordered in his letter. The letter from 12th March 2018 dubbed “Re: Lack of Seriousness in Tax Collection”. As they are just following his words and not considering any implications. That is what is bugging me.

If these was serious MPs who cared about the constituents and the citizens in general, before imposing taxes, they would see what estimates and who would be hit. Secondly, what it would do with quality of life and consequences for the poorest of the Republic. That is if they cared about that. Apparently, they don’t, because they are just whistling after the President and his every whims.

The people should be insulted by their MPs and their lack of understanding, their lack of concern. They should be ashamed to have this sort of people representing them. That they cannot have any of these following government bodies to do, due diligence on the amendment:

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).

All of these should have delivered some sort of report and proper framework, the actual costs and the implications of these taxes on Mobile Money and Social Media Tax. However, the didn’t do that, because they don’t care.

Neither did URA or MoFPED. They just didn’t care to put in the work and show the reality of these proposals. They are just blindly following the blind, aka the President. That is what they do and people have to suffer because of it. Paying much more for service, being invoiced as long as they have the possibility to use the services. That is what the Exercise Duty does, that is what the state do to its citizens. Peace.

Uganda is still not ready for IMF’s PCI!

“The Policy Coordination Instrument (PCI) is a non-financing tool open to all members of the International Monetary Fund (IMF). It enables them to signal commitment to reforms and catalyze financing from other sources. The establishment of the PCI is part of the Fund’s broader effort to strengthen the global financial safety net—a network of insurance and loan instruments that countries can draw on if confronted with a crisis.” (International Monetary Funds – ‘IMF Policy Coordination Instrument (PCI) 26.07.2017).

This here is really spelling out the missing dots in the budget and monetary policy wise, as the IMF has concluded a visit, but told that certain aspects are missing. Even explaining that the Republic have to be careful about borrowing money. As the Republic tend to do these days for all sorts of projects and building infrastructure all around the country. However, the IMF isn’t praising Uganda, the IMF is telling what it needs, if they want to be part of the PCI. That is important, because being part of that, then the state will have systems and ways to gain outside sources of funding and also safety mechanisms in the needs of rainy days. Therefore, following this program would be healthy for the economy, but will the National Resistance Movement and President Museveni comply to this? Would they?

“The authorities have made progress in setting economic policy objectives for FY18/19 and the medium-term. Fiscal policy seeks to keep public debt at a sustainable level which requires raising tax collection and prioritizing spending needs, while protecting key infrastructure projects and social expenditures. Monetary policy targets core inflation of 5 percent. Bank of Uganda aims to maintain international reserves at 4 to 4½ months of imports. Structural reforms would focus on revenue mobilization, public financial and investment management, reducing domestic arrears, enhancing financial sector stability and development, and putting in place the remaining elements of the framework for managing future oil revenues. The mission reached agreement on many key elements of a possible 3-year program under the Policy Coordination Instrument, but further progress in some areas is still needed. Once the FY18/19 budget has been approved as agreed, the mission could resume discussions” (International Monetary Funds – ‘International Monetary Fund (IMF) Staff Concludes Visit to Uganda’ 31.05.2018).

It isn’t the first time the IMF and World Bank says there policies and monetary programs needs changes, needs to be amended and fixed, so it is safer. This is something that always comes back. The NRM are clearly not listening or interested in listening. They are pre-occupied with the handshakes of the State House and the insider trading that they like to do. Not have accountability and transparency, because then all the tools of the shed is in the open. President Museveni doesn’t want his ghosts, his fake projects and his forged paperwork to be in the open. That would hurt his pride and also humiliate him. That is the reality of it all.

Therefore, the state has a long walk ahead still, even with the new revenue sources, as they are not considering the implications yet on the public. Just more revenue for revenues sake, but not how hard the new taxes really will have. They will hurt the public and the poorest the most. Nevertheless, they are not a concern for the state; they are more bargain chips for needed donor funds anyway.

President Museveni will not be interested in opening the books and showing the reality. We know that, therefore the PCI will not introduced shortly, neither will the accountability or transparency change either. It is not in his interest to revolutionize that. Then he would humiliate himself, which he only does to Opposition leaders, not to himself. Peace.

Uganda: The lowest paid civil servants would be hit by the Social Media Tax, up to about 20% of their total yearly salary!

You know that is wrong, when the state is issuing taxes that is insane. This is really banishing the poorest from certain aspects of life. By the time of November 2017, the lowest paid salaries for certain government employees are yearly about 250,000 shillings likes the U8 Local Government Workers. Others are the likes of U7 Primary School Teachers about 380,000 shillings. These are the lowest paid staff in and around in the Republic. Meaning this will be hit by the newly minted taxes that the state has imposed today in Parliament. This being the Excise Duty Amendment Bill 2018. These are on all different aspect of life and on needed services, products that people need, that will all become more expensive.

The reports said this about it!

Parliament has passed the Excise Duty Amendment bill 20l8 by imposing one percent tax on every mobile money transaction and 200 shillings on social media. The tax measures approved by parliament are close to 1 trillion shillings and government argues that they will help in improving the tax base of the country” (Mbarara Sun, 2018).

The approval implies that each person using platforms like WhatsApp, Facebook, Viber and Skype among others, will be subjected to a daily levy of 200 Shillings while each mobile money transaction will be subjected to a 1 percent excise duty. The government is projecting to collect 284 billion Shillings from the measures” (Open Gate FM, 30.05.2018).

There are also some that has calculated it be costing the citizen up to 70,000 shillings on a given year, as the person has to pay the 200 shillings for the use. That will happen from the 1st January 2019. If that is so. Out of the lowest salary, if your paying the total on the Social Media Tax, you will go from 250k to 180k. That is 28% of the salary paying for being on social media alone. That is the poorest of the poor, the salaries which is usually not on time and they are even not getting by. They are the ones that is closed out of the new services and places for information like the Social Media. This is shutting out the poorest from the Social Media, this is only making sure the elite and wealthy can log-on, but the rest will not afford it.

Who wants to use 20% of their salary to go on Facebook, Twitter, Viber and WhatsApp? Who wants to do that? Will people use the VPN to not show their IP Addresses to still come into the Social Media Accounts without paying for the barrier that the Republic has put forward.

This is really making sure the society and space of voices sounding disconcern on social media and in general on the internet. This is closing the web for the poorest. Taking a bargain of about 20% of their check in big swoop. I just wonder how they will enforce this and how they will monitor all accounts, all the log-ins and the grand issue of technical framework to put in place within the spectrum of 6 months too.

It is not like the same state together with the Mobile Industry was able to roll-out the registered Sim-Cards and whatnot over the last two years. It has been hectic, a charade and a mess. It hasn’t been professional or sincere, there been backpedaling and all sort of fatigue within the system. You cannot say the Sim-Card saga was smooth. Then you look into all the government organizations and the orders, which went back- and forth.

Time will tell how the state will enforce this one, this is not just adding a tax, but also the software and the addition of systems on the Mobile Phones. If they all have to be updated and get agreements for payment walls on the Social Media Apps and such. Will that also be on the Computers and whatnot? What is the legal framework that puts this in? Other than the 200 shillings per day!

We should really get people to address the 70k shillings a year possibly, that is lot of money. For some about 20% of their salary. That is just too much for browsing on their phone and looking at what Maureen made for dinner and what Steve wrote about Mao. But that is just what the National Resistance Movement (NRM) are doing.

200 shillings is really nothing, but when you take the whole piece of the puzzle collectively, just imagine all the other taxes put in this bills too. Are they taking 9 slices of the bread and leaving one behind to the taxpayer. Is that what the state is trying to do? Since they are already just on the Social Media Tax alone on the poorest civil servants and the local government workers who cannot afford to go there, because they have to decide to pay rent, food or school payments. Because when this is becoming this much of the salaries. You know just know this hurts the people in general.

This isn’t funny. This is serious. This is theft of the opportunities for the poorest in society. Peace.

Reference:

Mbarara Sun – ‘Parliament Endorses Tax On Social Media, Mobile Money’ 30.05.2018 link: http://mbararasun.com/index.php/2018/05/30/parliament-endorses-tax-on-social-media-mobile-money/

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!