The government plan to introduce new taxes in the next financial year has attracted critical reaction from a section of leaders and economists in the country.
On Wednesday, April 3rd 2024, Henry Musasizi, Minister of State for Finance
said that the recently tabled tax proposals on cement, fuel, and land transactions among others are intended to raise revenue to a tune of Shs1.902Trn.
MP Dr. Agnes Apea (Amolatar DWR) wondered the magic which URA will use to collect this the intended taxes given the revenue shortfalls the Authority has recorded in the recent past saying.
“What is new and what is really magical that you are going to do to raise the expectation of this country that you are going to raise additional Shs1.9Trn? I think that will put us at risk. We are better off maintaining the revenue that we generated last year because after all, we have never seen a year that we have achieved a surplus of 2%. I have a problem of over exaggerating our projections and for me, that is where the problem comes from,” said MP Dr. Apea.
Minister Musasizi said URA is expected to collect taxes worth Shs31.574Trn to finance the 2024/25 national budget, which is an increase of Shs1.9Trn from the current target of Shs29.672Trn, the Authority is expected to collect in FY 2023/24.
He made the revelation while appearing before Parliament’s Finance Committee where he has led the team from URA to defend their 2024/25 national budget.
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