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Tax on cash withdrawals from banks can only be approved by Parliament – Hon Bahati

State Minister for Finance Mr David Bahati

The Minister of State for Finance, Hon. David Bahati has assured the country that no taxes can be imposed without the approval of Parliament.

Bahati made this assurance while responding to a matter was raised by the Kassanda North MP, Hon. Patrick Oshabe that there was a plan to impose excise duty on agency banking and ATM withdrawals.

This was at a sitting of Parliament chaired by the Speaker, Rebecca Kadaga on Thursday, 11 February 2021.

Oshabe said that a letter from the Ministry of Finance to the Governor, Bank of Uganda seeking guidance on the same has been widely circulated on social media.

“The Minister of Finance should come and clarify the matters that are going on. Why should the government be planning to raise revenue on already taxed money?” Oshabe asked.

Bahati said that the letter was authored by the Deputy Secretary to the Treasurer inviting the Governor of the Central Bank to consult on an internal engagement with the Finance Ministry.

“In line with the Rules of Procedure of this House, I do request that we focus on something that is before the House and is a proposal by Law. If this House is going to be discussing internal memos between government agencies, it will be a tough one,” he said.

He added that the internal memo that leaked was consulting the Central Bank. It was not a proposal by law and it was not to the House and has no bearing to the House.

Kasilo County Member of Parliament, Hon. Elijah Okupa said that it was not an internal memo but a letter written to the Governor, Bank of Uganda.

“It’s unfair that government is thinking of such action especially when the country is recovering from Covid-19. The Minister should be stopped before the taxes take shape,” he said.

The Speaker directed the Finance Minister to present proposals for taxation to the House.

“You should bring the proposals for taxation here. We should have an undertaking that you will not implement this without our authority,” she added.

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Police warns the public against attending Valentine’s day parties

Spokesperson Patrick Onyango

Police have issued a warning statement cautioning the public against attending or hosting Valentine’s day parties.

Police say, they have read, listened and seen several advertisements both online and traditional media advertising parties in different places like hotels, beaches and other open arenas to celebrate valentine’s day on Sunday February 14, 2021.

“We therefore want to warn the organisers of these parties to desist from breaking the law and stop advertising for the events. The statement reads in part.

Patrick Onyango, the KMP Spokesperson, said Ministry of Health guidelines still stand and the COVID19 instruments:

He adds that the Public Health (Control of COVID-19) rules, 2020, that was put in place to fight the spread of Corona virus is still in operation.

He further appeals to members of the public to report to police any party or event that breaches the Coronavirus regulations, adding that any person that will attend such events will be arrested for breaching the laws.

When asked about the President’s directive of only 200 people are allowed to gather, Onyango noted that even this will not be working on this lovers day.

“People gather even beyond this allowed numbers and when we arrest them, because others have to escape, they will start arguing that they were few. This is what we want to avoid this time” Onyango explains.

Every year on 14th February, many people who believe in this day, especially lovers, converge and Merry make. Events organizers often times take the advantage and invite entertainers to entertain lovers.

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UPDF helicopter crashes at Entebbe

Helicopter crashes

A UPDF helicopter piloted by two has today afternoon crashed in Entebbe near Lido beach.

The chopper crashed a few metres away from the Air Force base.

“Today afternoon at about 2:15 pm a jet ranger piloted by two cadet trainees on a mutual training flight came down immediately after takeoff near Lido beach,” UPDF Spokesperson Brig. Gen Flavia Byekwaso tweeted.

The two cadet trainees have been rushed to hospital to ascertain their health as UPDF’s aviation team is on ground to investigate the matter.

“The two were rushed to hospital to ascertain their health. Our aviation team is on ground to investigate the mishap,” Byekwaso said.

 

 

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Ruling in Bobi Wine’s election petition set for March 18

Museveni, Bobi Wine

The Supreme Court will deliver its ruling in the petition in which Robert Kyagulanyi Ssentamu aka Bobi Wine wants the re-election of President Museveni nullified on Thursday March 18, 2021.

This was revealed by the Chief Justice, Alfonse Owiny- Dollo, the head of the panel of nine justices of the Supreme Court during the pre-hearing conference on Thursday in Kampala. On 1 February, Bobi Wine petitioned the Supreme Court claiming the January 14 presidential election was marred with irregularities and fell short of constitutional requirements.

The Chief Justice also noted that the petitioners (Kyagulanyi) have up to February 14 to file their affidavits in the matter while the respondents have up to February 20 to file their affidavits in response.

The petitioners will also have to file their written submissions by February 23, whereas the respondents will be required to file their written submissions by March 2 and by March 4, the petitioners will be asked to file their rejoinder if any.

Lawyers from both sides will have a chance to cross examine witnesses and also present electronic evidence between February 25 and 26.

Chief Justice Owiny Dollo however cautioned counsels for all parties to strictly adhere to the timelines given since he has accorded them sufficient time to do whatever they want to do. He also told them to desist from issuing disparaging information in the media and respect courts decisions.

Medard Sseggona on behalf of the petitioner and Attoney General William Byaruhanga accepted the directions of the Supreme Court and agreed to abide with the set timelines.

The respondents in the election petition filed by Bobi Wine including the Attorney General, Electoral Commission and the president-elect lawyers have since made their responses to the petition.

A team of 40 lawyers has been set up to represent Museveni while 25 lawyers will represent Bobi Wine.

On Thursday 14th January, 2021, the Electoral Commission conducted presidential elections where Ugandans exercised their constitutional rights of choosing a president who will lead them through a five year term. Uganda has a total 18,103,603 registered voters and 34,684 polling stations however only 10,350,819 people turned up to vote.

The presidential election which comprised 11 candidates was won by President Yoweri Museveni Tibuhaburwa Kaguta who got 6,042,898 (58.38%). His closest opponent Kyagulanyi Robert Sentamu got 3,631,437 votes (35.08%).

Timeline

February 14: Closing date for filing affidavits by Kyagulanyi lawyers

February 20: Closing date for filing of affidavits by Museveni and EC lawyers

February 23: Closing date for filing of affidavits in rejoinder by Kyagulanyi’s lawyers

February 24: Pre-hearing by the Supreme Court

February 23: Filing written submissions by the petitioner

February 25 to 26: Cross-examination for witnesses and presentation of electronic evidence

March 2: Filing written submissions in response by the respondents

March 18: Judgment day

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Kenyatta launches digital platform for data-driven malaria responses on the continent

President Uhuru Kenyatta of the Republic of Kenya.

Chairman of the African Leaders Malaria Alliance President Uhuru Kenyatta, has revealed that progress has been made in responding to malaria amidst the #Covid-19 pandemic.

Since the launch of the Zero Malaria Starts with Me Campaign in 2018 by African Presidents, 19 countries have launched the initiative. The public-facing campaign calls for communities and leaders to take personal responsibility to end malaria.

“At the onset of the Covid-19 pandemic WHO predicted a doubling of malaria deaths if severe disruptions to insecticide-treated net campaigns and access to antimalarial medicines were experienced. While we are now experiencing the second wave of the pandemic, I am delighted to say that through the strongest in-country leadership, this predicted doubling in malaria deaths was averted,” Kenyatta said.

The Covid-19 pandemic has severely impacted access to essential malaria services. However, African countries averted malaria by ensuring that around 160 million insecticide-treated nets were distributed door to door, indoor residual spraying took place as planned and more children than ever before were reached with preventive antimalarial medicines in areas of highly seasonal transmission whilst following Covid-19 protocols.

“While the targets in the Catalytic Framework to End AIDS, TB and Eliminate Malaria in Africa by 2030 are bold and ambitious, I am encouraged by the significant progress that is being made. We should continue the big push for new funding initiatives with a focus on domestic financing such as End Malaria Funds and End Malaria Councils, increased roles for the private sector, invest in new innovations and tools and above all maintain the political commitment, shared responsibility and global solidarity” said Mrs. Amira El Fadil, the Commissioner for Social Affairs at the African Union Commission.

During the meeting President Kenyatta launched the ALMA Youth Army Strategy that puts young people at the centre of the malaria fight in line with continental commitments including the African Youth Charter and the AU Roadmap on Harnessing the Demographic Dividend Through Investments in Youth. The instruments give priority to youth development and empowerment.

During the press conference, the RBM Partnership to End Malaria launched the Draw the line Against Malaria campaign, which seeks to tap into African Youth creative talent and deploys novel digital ways of doing business to end malaria that will significantly contribute to the vision set out in the ALMA Youth Strategy and the priorities that young people put together during the Africa malaria youth consultative process.

“Countries held the line against malaria in 2020 this year we must draw the line for good. The Draw the Line Against Malaria campaign will create a unifying, ground-breaking and inspiring global platform to capture youth and public imagination, rally communities and leaders behind the crucial fight to rid our continent of this deadly yet preventable disease,” said Dr. Abdourahmane Diallo, CEO of the RBM Partnership to End Malaria.

To enhance data-driven decision making and drive action, His Excellency President Kenyatta is launching today the ALMA Scorecard Hub, a new digital platform for scorecard management and accountability tools.

The launch of the ALMA Scorecard Hub is a critical step in African countries’ efforts to drive accountability and actions to achieve the bold targets set to eliminate malaria by 2030, end Neglected Tropical Diseases and improve maternal and child health on the continent.

The platform will allow countries to share their scorecards and best practices about the use of the tool. It will also offer a digital training platform with online courses and a repository of information, toolkits and global best practices on scorecard and accountability tools. Used in over 40 countries in Africa, the scorecard management tools track progress of key health indicators, ensuring that policy-makers and citizens have access to critical health data and those health workers, local governments and communities to be well informed to act.

Beating malaria remains a major public health challenge in Africa. During the #Covid-19 pandemic African governments mounted effective responses that ensured access to malaria services which averted many thousands of deaths on the continent. The Covid-19 pandemic has shown the importance of investing in and strengthening health systems and the need to work together to find solutions. The response to Covid-19 has set a challenge, to apply the same vigour, in the fight against malaria, for Africa to accelerate the elimination of malaria by 2030.

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Gov’t rolls out academic program for non-candidate classes

Pupils of Kampala Parents who scored aggregate 4 celebrate their results at school.

The Ministry of Education has released an academic program for all students who are scheduled to resume classes.

Last week, President Yoweri Museveni directed the reopening of schools to non-candidate students following his directive for closure in March last year. The closure according to Museveni peddled at curbing the spread of the deadly #Covid-19 pandemic.

The schools will open in a staggered manner that will ensure compliance with #Covid-19 Standard operating procedure (SOP) of maintaining social distance, washing hands or sanitizing, and wearing of face masks.

Apart from candidates who will sit for Uganda National Examinations Board (UNEB), Primary Leaving Examinations (PLE) and there will be no exams for the rest of the classes. Progression for other classes will be evaluated on attendance and a cumulative assessment.

According to the program, there will be no more nursery or kindergarten schools until the Covid-19 pandemic is over. Learners in this category cannot observe SOPs and are prone to respiratory infections and because many of the pre-primary institutions are day-based, there is a lot of interaction between learners, and parents, teachers which would increase the risk of contracting the virus. Children will now start school in Primary one at five years of age.

Primary six, S.3 and S.5 will study for 14 weeks starting from 1st march 2021 and ending on 21st May 2021. P.4. and P.5 will report back on 6th April after Primary Leaving Examinations (PLE) till 4th June 2021.

The lower primary, P.1 to P.3 will report back on 7th June 2021 till July 24th 2021. Senior Two will report back on 31st May 2021 and break off on July 24th.

Students in teaching Vocational Training and Teaching (TVET) Institute, Primary Teachers College (PTC) and National Teachers College (NTC) will report back on 1st March. Universities and other Tertiary Institutions shall open in phased manner starting from 1st March.

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Vision Group registers over Shs6b in losses for 2020/21 half year earnings

Robert Kabushenga

The outgoing Chief Executive Officer (CEO) of the New Vision Printing and Publishing Company Limited Robert Kabushenga has revealed that the company will register losses in 2020/21 half year earnings.

The company has for the past two years been making losses. The shortfalls have always been to alluded to an increase in expenses at the government printing company.

In 2019, the Company registered a turnover of Shs90.2 billion in 2019 compared to Shs90.6 billion in 2018 and Advertising revenue grew by 2.8 per cent. The Company recorded a gross profit of Shs21.8 billion in 2019 compared to Shs22.8 billion in 2018 while profit before taxation was Shs3.9 billion in 2019 compared to Shs4.6 billion in 2018.

Kabushenga pegs 2020 half year poor performance to the increase in the bad debts provision for business in prior years and required to be provided for in the current period under the international financial reporting standard 9 (IFRS9) expected credit loss model.

“The board of directors of New Vision Printing and Publishing Company limited wishes to announce to stakeholders, potential investors and the general public that based on the preliminary assessment of the company’s performance , the results of the company’s earnings of the half year will be a loss position,” he said.

The company according to Wall Street Market is expected to register a loss of Shs2.33 billion in Capital Expenditures, and Shs4.58 billion in Free Cash Flow.

The company has Shs12.25 billion Cash and Short-Term Investment, Shs5.72 billion Total Debt, Shs29.83 billion Total Liabilities, Shs73.36 billion Total shareholder’s Equity and 958.91 Book Value per Share.

“The board management is committed to ensuring improved financial performance of the company. This statement is issued pursuant to rule 40 (1) of use listing rules 2003,” he said.

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Minister Kamya, Land Commission fight over compensation cash

IGG Beti Kamya

Parliament deferred the approval of a supplementary budget of Shs292 billion for the financial year 2020/21 after it emerged that a request of Shs12 billion for compensation of individuals affected by land evictions in Bunyoro was made without the knowledge of the Uganda Land Commission.

This was noted by Hon. Gaffa Mbwatekemwa of Kasambya County who informed the Speaker of Parliament, Rebecca Kadaga that he had evidence that the Land Commission was not consulted before the supplementary request was made.

“I want the Minister (Hon Beti Kamya) to tell the House who initiates a supplementary. Within few minutes, I will bring a document from the Uganda Land Commission. They are protesting this supplementary because they are not aware of the people to be compensated in Bunyoro,” he said.

The letter from the Chairperson of Uganda Land Commission, Byenkya Beatrice Nyakaisiki which raised concern about the compensations was read by Mukono South MP, Hon. Johnson Muyanja Senyonga.

“I am dismayed and displeased that whilst watching Parliament on UBC this afternoon, I heard a list of people to be paid out as submitted by the Minister of Lands, Housing and Urban Development,” reads part of the letter.

“The commission is not privy to this list and wants the Minister to be brought to order for having usurped its powers knowingly. The Under Secretary who is two weeks old, accompanied the Minister as courtesy from the User Agency of these monies. To hood-wick parliament that we are privy to this list is deplorable.”

“Therefore I am kindly imploring your good office to un-tag the money given to Uganda Land Commssion so that it van expeditiously carry out its mandated responsibility. I await your positive response with much anxiety and gratitude,” the letter further read.

Hon Beti Kamya, the Minister of Lands, Housing and Urban Development was tasked to explain the matter and justify the need for the supplementary budget as MPs advised her to discuss the budget and reconcile with the Lands Commission.

“The Minister of Lands wrote to the Minister of Finance and brought all these matters to him and asked that funds should be provided for compensation of individuals in Bunyoro,” Kamya said adding that, “the letter was copied to the Uganda Land Commission three months ago and the Commission acting not in good faith did not raise the matter. The letter which has just been read is not even copied to the Minister of Finance and Lands.”

This prompted Speaker Kadaga to suspend the approval of the supplementary budget in its entirety.

“I have also received a letter and we need to ensure that we are moving together on this supplementary. I want to advise that we stand over the matter and allow the Budget Committee, the minister and all the stakeholders to review this matter,” she ruled.

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Mps call for diplomatic pressure on Kenya over ‘milk war’

The Kenyan authorities stopped Lato Milk claiming the product is substandard

A section of MPs are calling for sanctions on Kenyan goods and services to retaliate the current blockade on Ugandan dairy products by Nairobi.

The Kenyan authorities stopped Lato Milk claiming the product is substandard, among troves of dairy traders.

In a statement to MPs, Trade and Industry Minister, Hon Amelia Kyambadde suggested government has exhausted diplomatic avenues to resolve the escalating trade war to no avail.

“We have also summoned the Kenyan High Commissioner to Uganda and issued a diplomatic protest note but we have not got any response yet,” said Kyambadde.

But a joint Committee investigated the claims and found them to be untrue, with the Kenyan side declining to sign the report on findings.

The Minister of State for East African Affairs, Hon Julius Maganda said the quality talk is a ruse by Nairobi to frustrate the farmers because Ugandan farmers’ milk is cheaper than Kenya’s.

This discrepancy in pricing, said Maganda comes from the near total zero grazing in Kenya which is costly, as against Ugandan free-range practice that yields higher quality yet cheaper dairy products.

“They are using some avenues of failing us; that is the truth; but we don’t only sell milk to Kenya alone, we have identified other markets like the United States,” he said.

A last ditch diplomatic effort to resolve the crisis, said Hon Maganda, will take place on the 25th and 27th of February after which the East African Court of Justice will have to adjudicate the dispute.

Bugiri Municipality MP, Hon Asuman Basalirwa said government should consider this as a dispute and invoke the provisions of the East African Treaty by suing the Kenyan government in an effort to protect its farmers.

Speaker Rebecca Kadaga criticised government for being slow on reciprocating Kenya’s recalcitrant behavior, saying private citizens should explore the avenue of suing Kenyan authorities as provided in the treaty.

“I am concerned about the inability to exercise the principle of reciprocity; the Ugandan government has been slow on acting yet farmers are suffering and there is nothing they are doing about their suffering,” she said.

“I want to encourage the people of Uganda to sue the government of Kenya; under the treaty, it is possible for citizens to take the countries to court,” she added.

The World Integrated Trade Solution, a subsidiary of the World Bank, last year reported Uganda’s export to Kenya to have surpassed the imports at $580 million as against $515.8 million stoking the trade tension.

President Museveni has been reluctant to escalate the trade war and has on various occasions rooted for a more integrated East Africa, terming the trade tensions as ‘non-ideological.’

Tanzania, Rwanda and Kenya have, however, rooted for market nationalism and have been skeptical of the fast-paced diplomatic efforts to political integration.

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Plans to impose excise tax on agency banking and ATM withdrawals underway

agent banking

The government is in plans to impose excise tax on agency banking and ATM withdrawals in the commercial banks.

According to a letter dated February 9, 2021 by Patrick Ocailip, the deputy secretary to the treasury in the Ministry of Finance written to the Governor Bank of Uganda, they seek an opinion and data not later than Friday, February, 12, 2021 on the matter.

The proposed tax was reached at last week in a budget consultative meeting between the Ministry of Finance, Uganda Revenue Authority (URA), Uganda Communications Commission (UCC), Telecom Operators and Bank of Uganda (BoU).

“Following our budget consultative meeting held on February 5th, 2021, at this ministry attended by officials from Uganda Communications Commission, Ugandan Revenue Authority, Telecom Operators and Bank of Uganda, it was proposed that we explore taxation of cash withdrawals, from commercial banks,” reads part of the letter.

Currently, mobile money withdrawals are subject to a 0.5 percent excise duty while agency banking and ATM withdrawals in commercial banks are not subject to the same tax.

“We, therefore, wish to seek your opinion on the proposal and also request you to avail us with data on all categories of withdrawals for our further review and determination. We require tis date for the past three financial years (starting from FY 2017/18).”

According to the government, this will encourage cashless transactions and promote e-commerce, improve tax compliance in addition to raising revenue.

Ugandans will have to pay yet another tax, this time on withdrawals from commercial banks if finally considered by the government.

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