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Tuesday, October 3, 2023
Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank

Finance Ministry calls for a supportive tax system for easy finance accessibility

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The Ministry of Finance, Planning and Economic Development has called for a tax system that supports the strategic objectives of Financial Sector Development Strategy-FSDS.

According to the Ministry, the objectives are financial services for all, financial services for markets and financial services for growth.

Moses Kaggwa, the Director Economic Affairs in the ministry, said that the four areas of intervention can help in increasing access to and use of finance especially in long term finance.

The Director Economic Affairs delivered these remarks on the behalf of the Permanent Secretary of ministry of Finance, Ramathan Ggoobi in a conference about reshaping the tax system to support FSDS at Sheraton Hotel, Kampala.

According to him, other intervention areas can include strengthening financial innovation, supporting financial market infrastructure and strengthening financial stability and integrity.

He also revealed that Financial Sector Development Strategy also seeks to strengthen framework for Anti- Money Laundering and combating financing of terrorism.

John Musinguzi Rujoki, the Uganda Revenue Authority Commissioner General welcomed the call and vowed to support the ministry for effective delivery of services to Ugandans.

The Commissioner General has said that digitalization of financial services is one of the tax systems that can support the strategic objectives of Financial Sector Development Strategy to be beneficial to the economy and will positively impact financial inclusion which is one of the objectives of the Financial Sector Development Strategy.

He further reiterated the need for effective tax policies to encourage financial inclusion.

“The digitization of the financial services is beneficial to our economy, and will positively impact financial inclusion, which is one of the objectives of the Financial Sector Development Strategy” He noted.

He said digitalization provides a conducive taxation environment, due to the wealth of business data, which can give insights on incomes, persons for tax compliance.

Also he revealed that digitalization of the financial sector facilitates e-commerce, reduces cash economy and thus impacts the informal sector, and also said there is a direct relationship between digitalization of financial services and financial inclusion.

Musinguzi also noted that there is a need for effective Tax policies that will encourage the inclusion and uptake of the financial services, as well as positively impact the revenue administration, adding that the regulators and key players should be willing to share data, for purposes of tax compliance management.

Michael Atingi-Ego, the Deputy Governor of Bank of Uganda said that an efficient and effective banking system is critical for powering enterprises and smooth functioning of the economy. He said the financial system promotes economic growth and development by mobilizing, structuring and allocating savings to productive sectors.

The conference was co-hosted by the ministry of Finance, Planning and Economic Development, the Digital Research Program of the International Centre for Tax and Development-ICTD and TaxDev, Think Change and Institute for Fiscal Studies, funded by Bill, and Melinda Gates and UKAID.

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