Uganda Revenue Authority proposes ‘Wealth Tax’
The surge in revenue collection has prompted the Uganda Revenue Authority (URA) to propose to Parliament to consider imposing tax on the wealthy people in the country.
The proposal was fronted by John Musinguzi, Commissioner General URA while appearing before Parliament’s National Economy Committee where the tax body officials had appeared to discuss the impact of coronavirus on the economy.
Musinguzi says considering imposing a wealth tax, this will help mobilize and reduce income inequality that is bound to increase and impact COVID-19.
The Commissioner General defended his decision saying it would also serve to address the growing accumulation of wealth in a very small number of hands which has been observed while analyzing the databases.
Musinguzi further told Parliament that due to the slowdown in economic activities as a result of COVID-19, the Authority together with the Ministry of Finance revised the revenue projections to Shs19.878Trn compared to the initially projected Shs 21.810 trillion.
According to URA, the COVID-19 pandemic has affected its revenue collections pointing out Non tax revenue collections including appropriation in aid and in May 2020, only Shs9.86Bn was collected against the target of Shs95.01Bn, hence posting a performance rate of 10.38% and a deficit Shs85.14Bn.
Aaron Ainomugisha, editorial https://twitter.com/AaronAinomugis3