EXPERT VIEW ON THE IMPACT OF TAXES ON THE REVENUE IN FY2024/2025 NATIONAL BUDGET.
By Anslem Oyaru.
Domestic revenues for the FY2024/2025 amount to Shs 31.982 trillion, of which Shs 29.366 trillion will be tax revenue. The parliament of Uganda approved changes in the taxes to raise more revenue to improve the budget. Which include;Imposition of excise duty on powdered beer at Shs 1,000 per kilogram, on petrol and diesel by Shs 100 per liter, on imported wines from 80 percent or Shs 8,000 per liter to 100 percent or Shs 10,000, on adhesives, grout, white cement and lime among others. This, according to scholars means a huge tax burden on the citizens.
Wadri Kassino the National mobiliser for Alliance for National Transformation says increase in taxes calls for tougher times. “Now the ordinary person is going face tougher times beginning this July, many people will close business, people will go to invisible business, and it will be difficult for government even to collect taxes when you increase taxes you injure the chances of people going to production. The little that they produce will be too expensive for the ordinary people to buy and therefore only few people will buy,” Hon Wadri said
Simon Avutia an economist in Arua city says to realize the benefit of the budget the country needs to intensify the fight against corruption. “If the political will, to fight corruption is not there, then all this we have presented as out aspirations in terms of budget yields nothing we have over consumed, there something called marginal propensity to consume vs marginal propensity to save, how much is of your revenue in terms your budget is for consumption expenditure and how much is your revenue in terms of income and expenditure and budget is for service industrilsation agriculture, Education,” Avutia stressed.
The projected domestic revenue outturn for FY2023/24 is Shs 27.725 trillion against the target of Shs 29.672 trillion, leading to a revenue shortfall of over Shs 1.9 trillion.
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