Taxes on Sugar, Fuel, Sports Betting As Govt Unveils UGX 15 Trillion Budget

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In short
Finance minister Maria Kiwanuka today unveiled a 15 trillion Uganda Shillings Budget for the financial year 2014/15, up from 13 trillion in the 2013/14 financial year. Domestic revenues including taxes and borrowing will finance over 80 percent of the budget, of which most has been allocated to roads and energy infrastructure. To meet this increasing government expenditure, Kiwanuka proposed new tax measures on mobile money withdrawals, sports betting, petrol and diesel.

Finance minister Maria Kiwanuka today unveiled a 15 trillion Uganda Shillings Budget for the financial year 2014/15, up from 13 trillion in the 2013/14 financial year.
 
Domestic revenues including taxes and borrowing will finance over 80 percent of the budget, of which most has been allocated to roads and energy infrastructure. To meet this increasing government expenditure, Kiwanuka proposed new tax measures on mobile money withdrawals, sports betting, petrol and diesel.
 
Sugar prices have been declining for the last one year, which contributed to a reduction in inflation. The increase in excise duty could lead to a rise in the price of sugar. She also proposed capital gains tax on the sale commercial property.
 
 Kiwanuka also brought back the proposal to impose 200 Uganda Shillings on a litre of kerosene. This proposal was in the 2013/14 budget but was rejected by Members of Parliament late last year.
 
On sports betting, Ugandans who win money will be required to part with 15 percent of the money as tax. These measures are expected to raise close to 200 billion Uganda shillings in the next financial year.
 
The finance minister also got rid of some exemptions in order to increase tax revenues. There has been an exemption on interest income earned by commercial banks on agricultural loans. This has been scrapped among others.

The termination of VAT exemptions is likely to contribute at least 245 billion Uganda Shillings to government revenues. The International Monetary Fund (IMF) and the Economic Policy Research Centre had also cried foul over the exemptions which were limiting government expenditure.
 
Uganda Revenue Authority (URA) is to register a revenue shortfall of 470 billion Uganda Shillings this financial year. In the new financial year, it will be required to collect at least 9.5 trillion Uganda Shillings, up from 8.5 trillion in 2013/14, a target it failed to hit due to slowing economic growth.
 
The government will also borrow 1.4 trillion Uganda Shillings by issuing treasury bills and bonds down from 1.74 trillion Uganda Shillings in 2013/14 financial year.
 
Works and Transport, Energy, Education and Health Sectors got the bulk of the funding.  

 

Tagged with: 2014/2015 budget