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State Minister for Planning, Hon Amos Lugoloobi, has presented a supplementary expenditure of 1.10 trillion shillings for the Fiscal Year 2023/2024. Additionally, Minister Lugoloobi has tabled a loan request of $117.26 million from Standard Chartered Bank to fund the upgrading of the Kitgum-Kidepo Road, a crucial tourism route in Northern Uganda. Speaker Anitah Among acknowledged the potential tourism benefits of this road but voiced apprehension regarding the prolonged loan approval process.
Speaker Among raised concerns about the lengthy approval process for the loan, questioning how such delays could occur while commitment fees continue to accumulate. The loan request has been forwarded to the Committee on National Economy for thorough examination. Minister Lugoloobi provided updates to the House regarding discussions held with the Ministry of Trade Industry and Cooperatives Uganda and traders regarding pressing issues, including the Electronic Fiscal Reporting and Invoicing System (EFRIS).
According to Minister Lugoloobi, traders advocated for an increase in the VAT threshold from 150 million shillings to 1 billion shillings and a reduction in the VAT rate from 18% to 16%. They highlighted various challenges posed by EFRIS, such as high compliance costs and a lack of understanding among traders, regardless of their VAT registration status. Minister Lugoloobi announced that the Ministry of Finance, Planning and Economic Development would study and consult on the proposal to adjust the VAT threshold and rates within the next two weeks.
In the ongoing parliamentary debate concerning traders’ issues, Hon. Isaac Otimgiw expressed dissatisfaction with how the Ministry of Finance and Uganda Revenue Authority (URA) engage with businessmen, emphasizing the need for their involvement in tax negotiations. Hon. Godfrey Onzima raised concerns about the selective application of tax policies, highlighting the burden faced by local traders compared to foreign investors enjoying tax exemptions.
Hon. Juliet Bashiisha shared her experience of being charged 35% VAT for reusable pads, urging for more specific tax categorizations. Hon. Margaret Ayebare emphasized the importance of taxpayers understanding the impact of their contributions. Hon. Musinguzi called for parliamentary action to address the flaws in Uganda’s tax system, particularly concerning local investors’ treatment compared to foreign counterparts.
Speaker Anitah Among emphasized the importance of supporting local contractors to promote domestic content and economic empowerment. Hon. Margaret Rwabushaija expressed surprise at the presence of Egyptian hawkers selling saucepans, highlighting the need to address challenges faced by local traders in Uganda’s markets.
Source: The Ankole Times