Economists point out bottlenecks in the 2019/20 Budget

Economists, Members of Parliament and Civil Society Organisations on Monday, pointed out various anomalies in the Financial Year 2019/20 Budget.

This was during a Multi Stakeholders Dialogue on Tax and Budget, held at Protea Hotel in Kampala.

Hoima Municipality MP, Dr Lawrence Bategeka, said whereas government has prioritised industrialisation, very few industries do exist in Uganda.

He said over 70 per cent of essential commodities are still imported into the country.

He pointed out that, overtaxing imported goods would result in Bank of Uganda increasing interest rates to borrowers, thereby causing inflation and suffocating the economy.

“We can not even manufacture Boda Boda tyres , which is a basic commodity for majority youth in the Boda Boda business," he said.

Henry Semanda, an economist pointed out anomalies in the tax collection by Uganda Revenue Authority (URA).

He said there is need for tax education at Local Government level, to sensitise Ugandans on importance of paying taxes.

He lashed at URA officers, who collect taxes by intimidating tax payers, instead of using a soft language while carrying out their duties.

On government projects such as road construction, he said many projects are frustrated by middle men, ranging from consultancy, feasibility studies and procurement of materials.

“You find a project which would cost government Shs 100 million taking over Shs 500 million," he said.

He cited the agriculture Sector, which employs over 70 per cent of Ugandans, as being one of the Sectors badly hit by middle men or women, who cheat farmers on crop prices to make a big difference, for themselves.

“It’s important that Government promotes Agriculture cooperatives, to protect individual farmers from being exploited by these middle men or women” he added. He advised Government to introduce a technology that reduces the role played by middle men in all sectors.

Regina Navuga, a Program Officer at Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI Uganda), called on government to give incentives to local manufactures, to boost economic self sustenance and to curb over-dependence on foreign imports.

She cited pharmaceutical industries, as being those that require incentives, as they supply Ugandans with human medicine.