The Minister of Finance, Planning and Economic Development Matia Kasaija has called upon Ugandans to embrace the new taxes with open arms especially the 12 percent exercise duty on the internet saying it will boost the country’s revenue.
During an interview with CBS FM on Friday, Kasaija said that currently the Uganda’s economy is in a bad state and borrowing only will make it worse and that the only way to save the situation is by Ugandans fulfilling their responsibility of paying taxes.
“The outbreak of Covid-19 is a challenge itself because we need a lot of money to combat it. People are dying so we need money. This time I am not going to borrow money because people don’t want to pay taxes. Everybody knows that we need a lot of money people are dying. Where do you think we are going to get that money if not taxing Ugandans?” he asked.
“Ugandans need better services but don’t want to work for them. If you don’t pay taxes where do you think the government will get money to better services? We understand the present situation is not easy but Ugandans must know that without taxes no Uganda.”
Kasaija’s statement follows his Wednesday confirmation that Uganda is to receive a loan of $1 billion (Shs3.5 trillion) to recover from the Covid-19 pandemic that has affected its economy massively.
The $1billion loan is the second one that Uganda is taking from IMF since the outbreak of Covid-19 in March last year. At first, Uganda borrowed over $491 million under the Rapid Credit Facility.
The latest borrowed money will be disbursed in a phased manner in a three-year period from 2021-2024 starting with $258billion.
“Government of Uganda requested emergency assistance from the IMF to respond to the effects of Covid-19 on our economy in the short and long term. Where the situation has reached now it’s beyond business as usual,” said Kasaija.
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