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Archive for the tag “Uganda Revenue Authority”

Bank of Uganda: Monetary Policy Statement for October 2019 (07.10.2019)

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Uganda-Rwanda Tensions Part XII: Communique (16.09.2019)

Uganda-Rwanda Tensions XI: Deportation in Respect of 32 Rwandans INV/357/19 (12.09.2019)

Uganda-Rwanda Tensions Part X: Meeting of the Ad Hoc Commisson for the Implementation of Memorandum of Understanding of Luanda between Republic of Uganda and Republic of Rwanda (12.09.2019)

Uganda-Rwanda Tension Part VIII: A look into the Parliament Report on the closure of Uganda-Rwanda Border

On the 23rd August 2019, the Minister of State for East African Community Julius Wandera Maganda sent the report on the Closure of Uganda-Rwanda Border. This report has been made to update the EAC Committee. Still, the public deserves to get the numbers and the gist of the closure. What it really means in the hard numbers and with the cross-border trade.

Clearly, the closure has had an affect on both republics. As the Report states are that:

Following the closure of Cyanika, Katuna and Mirama Hills Border Posts on the 27th Feb 2019 by the Republic of Rwanda, as part of their mandate, the Ministry of East African Community (MEACA) has undertaken a number of steps as indicated below”.

There has been certainly new rules for entry between Uganda-Rwanda:

i. There is still free movement of persons (Ugandan Nationals and other Nationalities) to and from Rwanda save for the Rwandan citizens who are only allowed entry and no ex;.t from Rwanda.

ii. The only Rwandan nationals allowed exit from Rwanda from the borders above are the drivers on transit to Kenya and not to Uganda.

iii. It was also noted that the Ugandans who cross to Rwanda only go there mostly to attend Parties or Funerals, and not business as the environment for Ugandan goods and products is hostile.

iv. Whereas Ugandan nationals are allowed to enter Rwanda, it is unfortunate that Ugandan goods/products arc not allowed entry. These are rejected with no reasons given, no rejection notes/documents are provided. Many drivers have suffered the disappointment of being told to turn back to Uganda”

All of this has consequences. Just as the financial implications by this alone. The Ministry can show that in FY 2017/18 value the imports from Rwanda at 160,293,270,436 UGX and in FY 2018/19 it has gone down to 123,338,816,439 UGX. This is downfall of imports of 23.05 % from the last year.

The consequences for the export to Rwanda is also hit. In FY 2017/18 was 585,436,037,282 UGX and in FY 2018/19 is 426,884,832,406 UGX. This is a downfall of export in the amount of 27,08 %. from the last year.

The results of the closure of the border at Katuna has ensured that there was no trucks passing this pass, between March 2019 to the June 2019. When the trucks started to crossover again. Still in a fraction of what was done in the past. Before February 2019, the average inflow and outflow of trucks was above 3000. However, in the months of March to June 2019, there was less than 500 every month. Even ZERO in the months of April and May 2019. Before, the numbers has started to rise, but not more than 300 in June 2019. Surely, One-Tenth is a major change and has affect.

This has resulted in more traffic, within the inflow and outflow at the Mirama Hill. Until February 2019, there was usually about 300 passing in both directions. However after this it was around 2000 trucks passing through every month between March to June 2019. Which is showing that there are blocking of trucks and also the total numbers of trucks passing on both passes is less than 3000 in both directions. That is really hurting the cross-border trade between the Republic’s. It is easy to see.

The closure has had an affect and the new measures on both sides. Has hit the trading, but also general movement. That is visible and surely, would be nice to see what the Rwandan Parliament would write as a counter to the Ugandan side. To see if their have another explanation for this. Peace.

Statement attributable to the Spokesperson for the Secretary-General on the signing of a Memorandum of Understanding between Rwanda and Uganda (23.08.2019)

The Secretary-General recognizes the important role of Presidents João Lourenço of Angola and Felix Tshisekedi of the Democratic Republic of the Congo in facilitating the signing of the Memorandum.

NEW YORK, United States of America, August 23, 2019 – The Secretary-General welcomes the signing on 21 August 2019 in Luanda, Angola, of a Memorandum of Understanding between Presidents Yoweri Museveni of Uganda and Paul Kagame of Rwanda, with the aim of normalising bilateral relations between the two countries.

He encourages the parties to implement the agreement in good faith, with a view to restoring friendly relations and cooperation between the two neighbouring states, in the interest of peace, stability and sustainable development in the region.

The Secretary-General recognizes the important role of Presidents João Lourenço of Angola and Felix Tshisekedi of the Democratic Republic of the Congo in facilitating the signing of the Memorandum.

The Secretary-General stands ready to support the momentum generated through this and other initiatives to advance peace, cooperation and integration in the region.

Uganda-Rwanda Tensions Part VII: Memorandum of Understanding of Luanda between the Republic of Uganda and the Republic of Rwanda (21.08.2019)

OTT Tax: Totally failed its supposed revenue targets in 2018!

Today, the Uganda Communication Commission released their annual sector performance report of July 2019. It was really a bit funny look, as the state, the President and all of his handlers said the Over-The-Top Services would create a tax-base and revenue, which would benefit the state. That is why Uganda Revenue Authority (URA) had set up targets to streamline these new taxes.

I will show more of the fun and explain, as the UCC report really shows how malfunction and lack of due diligence hurt. But first a previous calculation, which was stated to the media. To show how much lack of tax-base the OTT had in 2018, as it was implemented in July and keeps pushing to this date.

Look:

Daily Monitor Reports: “Government collected Shs20.5b from social media in the last quarter ended September, according to data obtained from Uganda Revenue Authority. The tax, which was implemented in July, was however, less than the Shs24.9b target that URA had hoped to collect in the period. URA has a monthly target of Shs8.3b. The tax was introduced in the Excise Duty amendments of financial year 2018/19 requiring all social media users to pay Shs200 per day, before accessing certain platforms such as Facebook, Whatsapp and Twitter, among others. Government intends to collect about Shs100b before the end of the 2018/19 financial year” (Christine Kasemiire – ‘OTT raises Shs20b in first quarter, URA fails on targets’ 07.11.2018).

Let’s first do the math, accordingly, as the URA monthly target is 8,3bn shillings in revenue, every single month. A quarter of a Financial Year is 4 months. In today’s UCC report, it shows the numbers for the Q3 and Q4 of 2018. Which means, that states revenue from July-September and October-December in the previous years. By these standards its 8,3bn X3 to get the supposed of any given Q. That is 24,9bn shillings is estimated to earn per quarter.

However, the UCC report states that in the Q3, the revenue was 12,696,558,400 or 12,6bn shillings which is only about half of the anticipated revenue. The final quarter or Q4 isn’t much better:12,952,833,800 or 12,9bn shillings. Of the estimated earnings, the state is nearly able to gain about half of its target. The market and the consumers are not contributing or using the phones as much as they thought. What is striking if you combine the two quarters of revenue is that the state earned approximately 25,5bn shillings, which is sadly just above one quarter estimate of the URA in supposed revenue on this tax. The estimated earnings of the period would be about 49,8bn and this shows the state managed a deficit of about 24,3bn shillings. That is about on quarters earning not happening at all. Thats a giant shortfall of cash and the URA/UCC needs to explain the Ministry of Finance this one, because this a major loss of promised funding for the state.  

This shows how failed this tax is and what a waste of enforcement and making the tax in its first place. This isn’t fun and games, but a way of misusing power to tax people, just because you find something obnoxious. That is how it seems, since the President want to stop the gossip online and such. Stop spreading of information and ensure that poorest cannot afford to get online and use the OTT services. Because, that what this tax does. Peace.

Uganda Peoples Congress: Caution on Coffee Bill (17.07.2019)

Uganda-Rwanda Tensions Part VI: Press Statement on a Public Interest Litigation Case on the Closure of Uganda-Rwanda Border (01.07.2019)

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