the tax regime in this country and how tax collection is handled should be one of the first indicators that things are not goin' well
the harassment, unsupported and unequal tax assessments, where the same good or service can face different tax treatment, and the quiet refusal by many citizens to pay taxes willingly say a lot about how this kraalistan is governed
tax collection is not only about enforcement, it's also about trust
in countries where people can see that their taxes provide good public services, they are more likely to pay
they can accept high taxes when they can see what those taxes provide
when citizens use every legal and illegal way available to avoid taxes, it is often a sign that trust between the taxpayer and the state is weak
businesses and individuals start to hide income, stay informal, deal in cash or structure their businesses in other ways when they believe the tax system is unfair, unpredictable or too costly
this is also part of the reason some businesses use shell companies registered in mauritius and seychelles and then operate back here as foreign entities
because the kampala establishment has made it that foreign investors can receive tax incentives that local businesses hardly receive
the same problem is affectin' efforts to create a cashless economy
you cannot force people into formal financial systems while givin' 'em reasons to avoid those systems
if people believe that banks and mobile money make their money easier to trace, tax or take through fees and charges, many will prefer cash
tax compliance is based on a social contract
people pay taxes, the state uses that money to provide services and create a safe environment in which people can work and do business
when people know that their taxes provide good schools, hospitals, roads, security, water and other public services, they are more likely to accept taxation
you cannot expect someone who pays 3m for school fees, 2m for rent, 20m for a life-savin' surgery, and servicin' a loan to willingly pay tax from a business that makes only about 1m a month
the person already pays for basic services from private providers because the public system does not provide enough of those services
education and health care should receive enough public fundin' from taxes to reduce this burden on households
if the establisment wants people to pay taxes, it must first make people feel that their taxes are workin' for 'em
that is where a strong and sustainable tax system begins
eno mu duniya gyetuli kika π
This country is slowly going to the dogs, if it hasnβt already.
The economy is in ruins, despite attempts by the regime to paint a rosy picture. Fuel prices are through the roof & the dollar rate has gone wild. As a result, prices of everything are now going up the stairs to the rooftop.
The tax authority continues to squeeze us into the ground even when it knows we are barely hanging on. Youβre paying so many taxes you barely have anything left for basic survival.
On the other side Ministers, MPs, RDCs, Presidential Advisors & other folks of that kind are enjoying fat salaries & lavish lifestyles at the expense of the already burdened tax payer.
Meanwhile, service delivery is at an all time low, medical workers are disillusioned & aggrieved, teachers are grumpy & civil servants are just walking in & out of their offices at will. There is a nonchalant attitude across the entire civil service.
At the same time, the rule of law is nonexistent & anyone can be picked up at any time for as much as a sneeze that angers you-know-who. All this while, the Judiciary continues to turn a blind eye to the plight of political dissidents who donβt agree with the regime. People are picked up, tortured & kept incommunicado & the judiciary is mute.
Because the regime owns the parliament, all MPs can do right now is endorse whatever repressive law the regime cooks up to entrench itself. They legislate for the regime, not for the people.
Donβt forget that, security is now a reserve of those who have guns. Armed robbers, thugs with iron bars, pavers & other weapons own the streets. You canβt move without worrying that youβll be attacked & possibly thumped to death by goons looking to relive you of your hard earned shillings & property.
Iβm a lover of hope & positivity but is it such a wild thing to say that Uganda is tending towards a failed state? Is it being overly dramatic to say we are really going through the pits? And I know I seem like Iβm only picking out things that are not working but am I telling any lies?
Yes, there are things that work & there is so much to be proud of as a Ugandan but in this moment right now, Iβm very low on morale. And this is sad, considering this week we celebrate our independence.
How do you guys feel those ends? This side itβs looking bleak. π
My learned brother and Hon., may it be that, in spite of your best efforts, you have had some blind spots during this process? It may not be too late to do some introspection in light of the current economic downturn.
I now sit in a Western capital with large donors, previously ardent supporters of humanitarian and philanthropic causes in Uganda, who are cautious, even hesitant, to remit such support to Uganda on account of the law you and your colleagues processed.
I am no doomsday prophet, but I dare say, absent a repeal of the law, the philanthropic and humanitarian sector is at risk of complete collapse or, at best, a significant reset.
Conceal the King's illness.
Conceal the identity of the supposed heir.
Plunge the kingdom into an unnecessary succession battle β as a result.
Yet, somehow come out of it as the victim.
Quite impressive, if you ask me.
Lamara is one year old.
She has spent more of her life in a hospital than at home.
In January, one operation changes that. It lets her eat, play, and grow like any other child.
Her family cannot pay alone.
Give what you can. Share if you cannot.
Mzee, taught me to fight and die for Uganda. Many of my comrades, are either dead or casualties. The most painful thing is to have people in government who only want to steal from my soldiers.