The State propose a 0,5% Cash Withdrawal Tax (!)

The Ministry of Finance, Planning Economic Development (MoFPED) is preparing a tax on every cash withdrawal from ATMS or Commercial Banks. This means every time someone takes out cash from their accounts. The customers i.e. the citizens have to pay the state a fee to access their money. Just like they do with the mobile money transactions. That’s why the state is proposing this.

This is an easy way to access more funds without adding any value to the monetary market. The state will not do anything, but adding a fee. A percentage on every single transaction. In the meanwhile, they will also deplete funds from the citizens. As the citizens have to calculate every transaction to ensure they are paying less taxes. That is what people does when they want to ensure they get most value out of the money. Which will be standard.

The manner of doing this. Is in a state where there is already lots of cash and money in circulation. The Republic is built with cash based economy and need for cash itself. That is why in some ways this will even be a double tax. Especially for the ones having first mobile money transfer to family members and loved ones. They are first paying a fee to send it too them, which is the Mobile Money Tax. Then the person receiving the Mobile Money will have to pay either at a bank or at ATM the Cash Withdrawal Tax. In this way the state is getting paid twice before the money is even getting in circulation.

I wonder, if the MoFPED have thought of the consequences of this? Has the state considered the implications for the citizens? Or are they only trying to figure out new ways to cash in on every citizens. So that their behaviour and need for money will cost them.

Because, it is normal that foreigners or aliens are paying to take out money at a ATM abroad. They usually pay a transfer fee between their currency and the Ugandan Shilling. That is making sense and the bank also takes a fee for doing so. A tourist knows this and accepts it, as it is a way of easily access and securing local currency. However, what the state is proposing is paying a tax to access your own money.

The state is billing people for withdrawal of cash. In essence the state will take money for service rendered for printing money. They are billing the public for having circulated coins and bank notes. Since, they are taxing every transaction and that’s really ill. This sort of enterprise isn’t growing the tax-base, but taking away more funds from circulating. The more you tax, the more funds you are depleting from the system. In the end you have a evil circle where all taxes are overburdening the citizen. In such a manner, that they start to do all business and transactions on the black-market to save money. That is when the state loses out and cannot access these transactions at all. This because they have found other means of moving money and doesn’t want to pay added taxes on their needed funds.

The more these taxes are put forward. The more funds are taken away from the ones who needs them. This is all taken away from the citizens before they get to access the money. Either it is mobile money or taken from their account through a withdrawal. That should worry the Representatives and the ones making laws. The amount of 0,5% doesn’t sound like a lot, but imagine that on every single transaction or withdrawal. That will be huge sum and be a costly endeavour. Peace.

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Opinion: Chameleone needs to “pimp his ride” or just pay his taxes!

This is not the first time Jose Chameleone struggles to pay taxes. Jose has forgotten to this several of times. It is actually his M.O. and a thing he does. It is just his arrogance as he lives in a house on a hill and the rocky road to it. Makes him think that the Uganda Revenue Authority will not touch him.

In 2012 Jose got in trouble over a 2004 Toyota TX Prado, as he undervalued the car to URA and therefore the car got impounded by them. In 2014, the singer had to answer for back-taxes on his Cadillac Escalade , as he had tax-arrears on it. Also in 2016 the singer had tax-arrears on another Escalade.

Now in 2020, the same issues happens again. Now with his Toyota Land Cruiser V8. It is like this man doesn’t like to pay taxes or try to avoid it. Chamelone tries to run away from the tax-man. The man doesn’t want pay the state. This is how it seems, since he cannot manage to cough up for the cars he buys.

This is the third car he haven’t paid properly his dues. The man is incapacitated or ignorant of the levies of taxes on motor-vehicles. Seems, like someone needs to give the Mayoral Candidate a lesson or get him to meet URA. Since, this is something he repeats. He rewinds the same story, only to switch with car and what type of car. The rest is the same.

Chameleone can blame others, he can throw under the bus and say that URA is on a vendetta. However, most likely his lazy and his Team isn’t covering for the man. The auditor and the ones running Leone Island isn’t doing it well. Since, this continues to happen. If they have the same person running the books of the company. Than that man should get the axe and the singer hire someone new. Because, this practice is getting old.

You have three cars in questions of the years now.

First in 2012: Toyota TX Prado.

Second in 2014: Cadillac Escalade

Third in 2020: Toyota Land Cruiser V8

As we see, the theme continues with just another ride. He could either pimp his rides or do himself a favour. Pay the damn taxes and move-on like a grown man. You own things, now cough up the dough and let it be. Peace.

A look into the new URA Commissioner General John Musinguzi Rujoki

Today its official that John Musinguzi Rujoki is appointed as the Commissioner General for Uganda Revenue Authority. He takns now over after 5 years and 5 months of Doris Akol at the helm.

So, the appointed Commissioner General has been the Head of Finance and Audit at the Special Revenue Protection Services under the wings of IGP Kale Kayihura. That’s something he was until he became the Senior Presidential Advisor for ICT. Last year he was appointed the Chairman for NITA-Uganda. Therefore, this man has risen to the upper echelon. His now switching boards and chairs to the liking of the President.

Musinguzi has shown his loyalty in the past as a false witness in the rape case against Besigye in January 2006.

At the rape trial he said this:

DM: At 27, you were heading the department of audit and finance?

MJ: Yes

DM: To whom were you answerable?

MJ: Head of the unit.

DM: Who was this?

MJ: The current inspector General of Police, Maj. Gen. Kale Kayihura.

DM: In your report line, did you have to report to the President?

MJ: Yes.

DM: Did you know the President before?

MJ: Yes.

DM: Prior to working with SRPS, were you known to the President personally or your family?

MJ: Yes.

DM: Was he known to your family?

MJ: He must be knowing the family because we come from the same county” (New Vision – ‘Details of Besigye rape case. DAY FOUR: Jan. 11, 2006’ 31.01.2006).

So, we know why his picked for the URA Commissioner General, as his a loyal waterboy of the President. Who the President knows and trust. That is why his been a Presidential Advisor and held responsibility for so long. His one of the cadre that will be used and also learned from Kayihura. Therefore, he has the qualities that the President looks for.

The appointment comes from the quasi-military outfit SRPS, which was important and lucrative. As it did cease contraband and smuggled goods. This was goods and valuables that could get “lost” and suddenly vanish. That is why there was questions about how the accounting about the SRPS and the “lost” billions shillings too. Also, how ceased goods like cars, tobacco and other valuables disappeared. Surely, these stories should haunt a former head like Rujoki. Not only his false testimony, which he did out of loyalty.

We can anticipate a loyal cadre, someone who will not even dare to insult the mind of the President. He follows the orders from above and will not question the President. He knows what happens if he does and he knows, if he stays loyal he will be compensated. Just like his been paid respectfully for the deed of being a false witness years ago.

Being the Chairman of NITA and now Commissioner General of URA. Surely, loyalty pays off. Gone from a hack inside SRPS to become a big-man in URA. If you know, now you know. Peace.

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