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URA suspends 15% withholding tax on oil importers

Uganda Revenue Authority (URA) has halted the enforcement of the 15 per cent withholding tax on oil marketing companies. According to URA, this is to allow for further discussions between stakeholders on the matter on Friday.

This comes after the oil marketing companies in Uganda petitioned the Ministry of Finance to intervene in a tax dispute with Uganda Revenue Authority.

URA recently wrote to the companies demanding that they remit 15 per cent withholding tax on all foreign transport payments incurred over the years in importing fuel into Uganda. The dispute has persisted since 2019 between the oil companies, some logistics firms and manufacturers.

The association says its 40 members are aggrieved that the URA is acting against the advisory opinion of the Attorney General who cautioned against such tax imposition. They add that URA’s decision to tax foreign transport payments is also unique to Uganda and against international and regional practices.

“Tanzania, Kenya, Zambia and Ethiopia are some of the countries that do not tax foreign transportation payments unless the recipient of those payments is established as a business in their countries,” Denis Kakembo, a Managing Partner at Cristal Advocates said.

The traders say that should URA insist on taxing the payments, the foreign transport service providers, who account for the bigger share of the transportation services, may withdraw their services, and if the oil dealers decide to absorb the cost of the tax, then the final consumer will bear the cost because the price of the products will be hiked.

Kakembo fears that if this tax is embraced, it will form a precedent for the tax to be applied to transporters in other sectors or businesses, including the importation of materials for the ongoing development of the oil and gas sector.

“If this tax imposition is not thought through clearly, there will be project cost overruns that may derail Uganda’s first oil projected to flow in 2025 because at the project evaluation stage, this tax imposition was never taken into account. This would also be the same on other imports and exports, provided long-distance cross-border transportation is dominated by foreign companies,” Kakembo said.

In a separate letter by Crystal Advocates to the Minister of Finance, Matia Kasaija, the lawyers say that the 15 per cent withholding tax on foreign transporters of inbound cargo, should be scrapped to preserve Uganda’s competitiveness.

Earlier in March 2020, Deputy Attorney General Jackson Kafuuzi advised Uganda Investment Authority that only the tax on transporters for outbound cargo be taxed at 2 per cent because the law was not clear on inbound cargo. The Ministry of Finance is now set to discuss the issue with the oil marketers and their legal representatives on the matter this Friday.

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Parliament pays tribute to fallen BoU Governor Prof Emmanuel Tumusiime-Mutebile

Mutebile

Parliament has paid tribute to the fallen Bank of Uganda (BoU) Governor, Prof Emmanuel Tumusiime-Mutebile who died on Sunday, January 23, 2022 at Aga Khan Hospital where he was admitted over diabetes-related complications.

Eagle Online exclusively reported on January 4, 2022 that the economist was admitted to the Kenyan Health facility after he collapsed on 31st December 2021.

The motion to pay tribute to the longest serving Governor of BoU was moved by the Prime Minister Robinah Nabbanja. The motion was seconded by the Leader of Opposition in Parliament (LoP) Mathias Mpuuga.

MPs hailed the late Governor Mutebile for his firm spirit during ‘tough’ times, a character they say saved the economy from collapse. He is praised as an icon that rose to high ranks due to his comptence and faithfulness to service.

The LoP said Mutebile was the right man with the right credentials who rose on account of his competence that helped cushion our economy from a state of near collapse in the early 1990s.

“Mr Mutebile without fear attributed the Inflation and exchange rate depreciation of 2011 to the election cash bonanza. After city traders closing shops for weeks in a strike protesting against escalating dollar price, Mutebile admitted that this money was used for electioneering and promised that next time he would not allow it,” he said.

Jimmy Akena (UPC, Lira East) recalls the friendship between his late father, Milton Obote (former president) and Mutebile. Akena said the late Obote admired Mutebile and treated him as a family member and that Mutebile kept close to the family even after the demise of Obote.

Mutebile will be laid to rest at his ancestral home in Omuruhiti, Kabale Town on Sunday, 30th January 2022.

Mutebile has been on and off duty over the deteriorating health conditions. He was put on daily dialysis because his kidneys had weakened and they couldn’t do their excretion job. He was in September last year admitted at Nakasero hospital for a full week. He was later discharged and continued to be monitored from his Kololo based home. He was admitted to Cleveland hospital in Abu-Dhabi till December when he was discharged.

The 72 year old, whose contract was renewed on January 12th, 2021 for five years, has been at the helm of the central bank since 2001. He is the longest serving Chief Executive in the Bank of Uganda’s history. He is credited with many of the sound economic policies adopted by the Uganda government at the urging of the central bank during the 1990s and the first decade of the 2000s.

Amidst Covid-19 pandemic Mutebile and his team have kept Uganda’s economy generally stable. Inflation has been contained within the BOU target of 5% and the Shilling has remained stable against major currencies.

Mutebile was born on January 27 1949 in Kabale district Kigezi sub-region. He attended Kigezi College Butobere for his O-Level studies and then went to Makerere College School for his A-Level studies.

In 1970, he enrolled at Makerere University to study economics, where he was elected president of the university Students’ Guild.

He was forced to flee Uganda in 1972 after he gave a speech publicly criticizing the expulsion of Asians from the country by President Idi Amin, he fled to England and was able to finish his studies at Durham University graduating with an upper-second in Economics and Politics. In October 1974, he began his post-graduate studies at Balliol College, Oxford.

He returned to East Africa to Tanzania at the University of Dar es Salaam to lecture and conduct research while pursuing his doctorate in economics.

Between the year 1979 and 1984, Tumusiime-Mutebile was appointed to several government positions in Uganda ranging from Deputy Principal Secretary to the President at State House in 1979, to Undersecretary in the Ministry of Planning in 1981 where he rose to Senior Economist and then Chief Economist in 1984. In 1992, he was appointed Permanent Secretary to the newly combined Ministry of Finance Planning & Economic Development, a merger that he had advocated while working under Minister of Finance Gerald Ssendaula.

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“I don’t think we have achieved the democracy we had planned at that time” – Mathew Rukikaire

Matthew Rukikaire

Uganda’s former Minister for privatisation and Former Makerere University guild president (1962-1963) Canon Hon Mathew Rukikaire has asked the political parties in Uganda to believe in dialogue as it’s only the answer that will usher in peaceful transition.

He said this on NRM liberation day as he discussed issues related to the 36 years of the ruling National Resistance Movement.

Rukikaire noted that the country still needs freedom of speech although the government at some point doesn’t allow most media houses to work independently.

“We still have freedom of speech, although they don’t allow you to publish certain things. I don’t think another bush war would solve the problem. I believe dialogue is the answer; it had better happen when some of us are still around to contribute” Rukikaire said.

Rukikaire also said that National Resistance Movement NRM ran into serious problems in the central region and so you can’t have a region like Buganda where NRM is totally wiped out in elections and then you say that you leading this country expecting it to get on the same level in terms of development hence describing it as unhealthy thus a need for dialogue to find the long standing solution.

He says he is happy with some groups which are joining Uganda’s politics but whose aims are good and won’t let them into another war.

“I have heard the Kyagulanyi group say they don’t want war. Today’s problems can be corrected through genuine national dialogue, which is not dominated by NRM or another group.” Rukikaire said.

The former cabinet minister added that Uganda’s economic stability was achieved to some extent but later down the line, the country got problems.

He says that a big issue that must be addressed today if it’s to be stable, the government must reduce on borrowing that might lure the country in turmoil.

“I don’t think we have achieved the democracy we had planned at that time. We need to ask ourselves whether we have brought the democracy we are proud of,” he concluded.

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Afcon 2021 quarter-final fixtures confirmed

Afcon 2021

Hosts Cameroon went through to the quarter finals of the Africa Cup of Nations following an eventful 2-1 victory over Comoros.

Karl Toko Ekambi gave the Indomitable Lions lead just before the half hour mark with a neat finish inside the area.

Captain Vincent Aboubakar doubled their advantage 20 minutes from time before Comoros captain Youssouf M’Changama pulled a goal back from free kick.

Egypt qualified to the quarter finals of the Africa Cup of Nations Cameroon 2021 following a 5-4 penalties shootouts victory over Cote d’Ivoire.

The record champions kept their cool in the nerve-racking penalties to beat Cote d’Ivoire with substitute goalkeeper Mohamed Daader saving Eric Bailly’s spot kick.

The Atlas Lions of Morocco secured a place in the last eight, after coming from a goal down to defeat Malawi 2-1. It was Gabadinho Mhango who struck early for the Malawi Flames after only seven minutes.

En-Nesyri made it 1-1 at the stroke of halftime before defender Achraf Hakimi beautifully curled in a free kick that beat the Flames’ goalkeeper Charles Thom in the 70th minute.

At the 2019 AFCON held in Egypt, the Atlas Lions were ejected in the round of 16 by Benin in penalty shoot-outs after a 1-1 draw. Morocco have also lifted the AFCON trophy once in 1976.

Senegal roared into the quarterfinals after defeating Cape Verde Cape 2-0 at the Stade Omnisports de Bafoussam in a round of 16 match on Tuesday.

Sadio Mane and Bamba Dieng’s second half goals sealed the victory for Aliou Cisse’s men in a game which saw two Cape Verde players receive a red card.

Equatorial Guinea needed penalties to beat Mali by 6-5 after a goalless draw in extra-time, to reach the quarter-finals and set a date with Senegal on Sunday.

Nzalang Nacional reached the quarterfinals for the third time in as many participations, while Mali failed to imitate what they did in Cameroon 50 years ago when they reached the final in 1972.

Musa Barrow’s strike in the second half gave Gambia a historic 1-0 win over Guinea to qualify for the quarterfinals of the TotalEnergies Africa Cup of Nations at the Stade Omnisports de Bafoussam on Monday.

The Scorpions continue to send shockwaves in their debut appearance at the Africa Cup of Nations and are without a loss in the competition so far.

Tunisa defeated 10-man Super Eagles of Nigeria 1-0 in a round of 16 match played at the Roumdé Adjia Stadium in Garoua.

After a goalless first half skipper Youssef Msakni gave Tunisia the lead two minutes after recess.

Saturday, January 29, 2022

Gambia vs Cameroon

Burkina Faso vs Tunisia

Sunday, January 30, 2022

Egypt vs Morocco

Senegal vs Equatorial Guinea

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Museveni to meet Anglican Bishops over breastfeeding and pregnant girls who intend to go back to school

Museveni

President Yoweri Museveni is set to meet Anglican Bishops to deliberate on breast feeding and pregnant girls who intend to go back to school. Museveni said this during the 36th commemoration of the National Resistance Movement (NRM) Liberation Day at Kololo independence grounds.

“We are going to sit down with the Bishops and find a solution for students who got pregnant during the lockdown. There is an argument about whether they should go to school while pregnant or breastfeeding,” President Museveni

He said; “What I will not agree to is to condemn the child not to continue with her education because she got pregnant. That, I will not accept. It is not logical or religious,”

On Monday January 10, 2022, the government of Uganda opened up schools for over 15 million learners after nearly two years of closure in 2020. The closure according to Mr. Museveni peddled to curbing the spread of Covid-19 pandemic. The closure of schools has since led to impregnating of over 100,000 school going girls.

As the country geared towards the reopening of schools, the Ministry of Education issued guidelines allowing girls who got pregnant or gave birth during the lockdown.

Bishop James Ssebagala of Mukono Diocese directed teachers in Church of Uganda-founded schools to block pregnant or breastfeeding girls from accessing their institutions. The bishop said it wasn’t morally upright to allow them to sit in classes with other learners.

“All head teachers, I want to tell you that we shall not allow pregnant or breastfeeding girls in class. When all girls turn up, carry out the usual medical examination so that those found pregnant can go back and give birth; they will come back after giving birth,” the bishop said.

He was later backed by the Archbishop Stephen Kaziimba Mugalu who said Church of Uganda schools have no facilities to handle breast feeding and pregnant girls.

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EU calls for immediate release of Kakwenza Rukirabashaija

Kakwenza Rukirabashaija

The European Union has called for the immediate release of Ugandan Novelist Kakwenza Rukirabashaija who was re-arrested moments after being released on bail.

Yesterday, the Buganda Road Magistrates Court released Kakwenza on bail after spending two weeks in Kitalya Prison. He was however re-arrested by armed men and is held at an unknown detention facility.

“We express our serious concern at the reports that Ugandan writer Kakwenza Rukirabashaija has been taken against his will by armed men and is again held in an unknown place of detention,” EU said.

EU said such an action just hours after the magistrate ordered for his release on bail is a clear disrespect to the rule of law and the right of a Ugandan citizen to a fair trial. “Mr. Rwabashaija should be released immediately and we appeal to all parties concerned to ensure that the rule of law and due process are upheld in this and all cases in Uganda,” The EU said.

Kakwenza was arrested at Kisaasi after a three days twitter feud with supporters of UPDF Land forces commander Muhoozi Kainerugaba. Kakwenza averred that Muhoozi’s supporters were allegedly bullying him for criticizing President Yoweri Museveni.

Kakwenza is facing two counts of offensive communication, contrary to Section 25 of the computer misuse act 2011.

Prosecution avers that Kakwenza on 24th December 2021 in the Kampala District, willfully and repeatedly used his Twitter handle to commit cases of offensive communication against the President of Uganda Yoweri Kaguta Museveni and the first son Lt Gen Muhoozi Kainerugaba, with no purpose of legitimate communication.

Rukirabashaija is the author of the novel The Greedy Barbarian, which takes on themes of high-level corruption in a fictional country. He was arrested on 13 April 2020 in Uganda, and held for seven days, during which time he was interrogated about his fiction and subjected to torture and later released. Rukirabashaija details this treatment in his latest work banana republic: Where Writing is Treasonous.

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“I was humbled to serve in State House Anti-Corruption Unit” – Col Nakalema

Col. Nakalema

Col. Edith Nakalema has revealed that the newly appointed head of State House Anti-Corruption Unit Brig. Gen. Henry Isoke will not find it hard to work given the team’s degree of commitment and patriotism.

President Museveni yesterday appointed Brig. Gen. Henry Isoke as the new head of the State House Anti-Corruption Unit to replace Nakalema.

She said the appointment of her superior, Isoke as the new head of the State House Anti-Corruption Unit confirms the pivotal role that the unit continues to play in the fight against corruption.

Nakalema lauded Museveni who is also the commander in chief for the opportunity he gave her to establish and lead the Unit for the last three years.

“I wholeheartedly wish to thank the President and Commander in Chief for the opportunity he gave me to establish and lead the Unit for the last 3 years. It’s been an honour and an enriching experience to serve my beloved country in that capacity,” Nakalema revealed.

She, in tandem, applauded the media fraternity for being a dependable partner in exposing the corrupt and evangelizing their efforts in the war against corruption.

Nakalema also appreciated the citizens of Uganda for being part of the support system in fighting corruption.

“I also thank the citizens for supporting our collective fight to eliminate the corrupt. Please keep it up. I am equally excited about my nomination by H.E The President to join the pioneer participants of National Defense College, Uganda (NDC-U). It’s the topmost course of one’s military career,” she said.

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MPs halt financing UPDF operations in Congo

UPDF attacks ADF camps in Congo

Parliament’s Committee on Budget has decided to stay allocations to ‘Operation Shujaa’, a code name for the Uganda People’s Defense Forces campaign against the Allied Democratic Forces (ADF) in Congo, until the legislature is apprised of the operation.

The Ministry of Defense had asked for Shs89.7 billion to finance the operations but MPs said briefing of Parliament should precede committing public funds to the operation.

“During the deployment of the army, Parliament was by-passed. We don’t know how many battalions are in Congo. We are entitled to know the exit strategy and reports on casualties on our side,” said Chief Opposition Whip John Baptist Nambeshe (NUP, Manjiya).

MP Ibrahim Ssemujju followed suit.

“When we asked for a briefing, they said we have nothing to do with Parliament; now why would they come to the same Parliament for money? For me my proposal is that this should wait until we are briefed,” he said.

The Committee on Defense and Internal Affairs was appearing before their budget counterparts to present the budgets of the sectors under their watch.

These are the Ministries of Defense and Veteran Affairs, Internal Affairs, Government Analytical Laboratory, Uganda Prisons Service, Uganda Police Force, National Citizenship and Immigration Control and National Identification and Registration Authority.

Budget Committee Chairperson Patrick Isiagi Opolot (NRM, Bukedea County) agreed with his Members.

“Before you come up with proposal for funding, we must have been briefed [and you report] on what challenges have been encountered,” he said.

In the National Budget Framework Paper, the Medium Term Expenditure Framework (MTEF) allocated to the African Union Mission in Somalia (AMISOM) is less by Shs406 billion, while classified expenditure suffered a slash of Shs86.7 billion.

The Committee on Defense and Internal Affairs made a case for the reinstatement of the AMISOM budget.

“The Committee [on Defense and Internal Affairs] recommends the reinstatement of AMISOM budget of Shs404 billion as the peace mission is still on for the pacification of Somalia and the Great Lakes region,” said MP Rosemary Nyakikongoro (NRM, Sheema).

The MPs also made a case for the army’s salary enhancement, which they said could come in handy given the rising cost of living.

“The Committee established that salaries for the soldiers were last enhanced eight years ago; the current monthly pay of a soldier at the rank of private is Shs485,000 amidst the increased cost of living,” said Hon Nyakikongoro.

She supported UPDF’s request for an additional Shs493.2 billion so that the lowest paid soldier can earn Shs600,000.

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Gov’t confirms Bar Aviation to provide local flights to tourism sites in Uganda

BAR-AVIATION

The Government of Uganda has cleared Bar Aviation, an air travel company, to provide direct local flights to the different tourism destinations in Uganda.

According to Uganda Civil Aviation Authority (UCAA) Spokesman Vianney Luggya, Bar Aviation will officially launch its services starting on 1st February, 2022.

“With a planned commencement of flights, it’s our hope that bar Aviation is going to contribute to the domestic traffic. Tourists don’t have to go through the road hustle now, so we highly recommend this,” Luggya said.

According to the Country Manager, Anthony Njoroge, Bar Aviation will have daily scheduled flights to the National Parks (Chobe, Bugungu, Pakwach, Pakuba, Mweya, Kasese, Semuliki, Kihihi, Kisoro) from Entebbe International Airport. Prices have not been communicated yet but industry colleagues say they are likely to be “very competitive”.

“Bar Aviation’s partnership with Uganda Airlines, which will allow international tourists to book flights all the way to the National Parks when booking their international travel,” Njoroge said.

Bar Aviation flights to Arua from Kajjansi Airfield will depart every Monday, Wednesday and Friday. Kajjansi’s proximity to Kampala is ideal for the capital’s business travellers.

Bar Aviation’s fleet comprises small planes (max. 12 passengers) and helicopters for scheduled flights, charters and ‘medevac’ medical emergencies. Bar also have a flight training academy.

A Memorandum of Understanding has been signed between Bar Avaition Uganda and Uganda Airlines as the preferred local carrier and an interline for domestic flights in Uganda.

“Bar Aviation is giving us an opportunity to enjoy our tourism experience on the road. We pledge to give you all the necessary support from us the head tourism marketing arm of tourism in Uganda,” Claire Mugabi, the Marketing Manager Uganda Tourism Board, said.

“It’s important to have a local operator of this kind for scheduled flights,” Shakira Namara Uganda Airlines Marketing Manager said.

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AFCON quarterfinal moved from Olembe stadium after eight die in stampede

Fans at Olembe_Stadium

The Africa Cup of Nations quarter-final due to be held at the Olembe Stadium on Sunday will be moved after a fatal crush outside the ground on Monday.

At least eight people were killed and 38 injured as fans struggled to get access to the stadium.

CAF President Dr Patrice Motsepe conveyed heartfelt condolences to the families of the eight supporters who lost their lives at Olembe Stadium during the fixture between hosts Cameroon and Comoros. 

President Motsepe also announced that the next match which was scheduled to take place at Olembe Stadium on Sunday 30 January 2022 will take place at Ahmadou Ahidjo Stadium, pending a full report of an Investigation Committee consisting of CAF and Local Organising Committee members.

Dr Motsepe stated that a moment of silence will be observed in the remaining fixtures to honour the memories of the eight.

He said: “We are saddened when there is loss of life and all of us should put aside the legal issues and take responsibility. Our thoughts and prayers are with the families and friends. The CAF family is deeply hurt. We would like to convey our deepest condolences to the families, friends and relatives of the people who lost their lives yesterday.”

President Motsepe added: “We have a duty to find out exactly what happened and more importantly to put in appropriate measures to ensure that what happened never happens again. When people lose their lives, we all should be angry. We have to demand explanations and guarantees that it will never happen again.”

The CAF President visited the injured in Yaoundé hospitals.

“This morning I was at the hospital and visited the injured people. At this moment our greatest attention is on the people who have suffered, I wanted to visit the injured spectators last night but was advised to allow the doctor and the medical staff to focus on the injured spectators.   I want to reaffirm that we are very sorry, and we will assist the injured and the families of those who lost their lives in whichever manner possible.”

Dr Motsepe has also indicated that CAF will reach out to all the families of the eight supporters who lost their lives in the next few days.

The Olembe Stadium, newly constructed to host the tournament, has a capacity of 60,000 but was not meant to be more than 80% full because of Covid-19 restrictions.

The ground held the opening ceremony and is due to host a semi-final and the Nations Cup final on Sunday, 6 February.

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