Browsing: Uganda’s budget 2020/2021

Uganda has set aside money in its $43 trillion budget for the 2020/2021 financial year to help revive small and medium businesses that have been affected by the COVID-19 pandemic.

Uganda’s government allocated $88.4 billion as credit through Saccos and microfinance to help small and medium businesses.

Uganda’s minister of finance Matia Kasaija, said since the sector accounts for 85 per cent of private employment, the credit was significant.

Uganda Development Bank was also given $98 billion to enable businesses mostly large scale private firms and manufacturers to borrow at low-interest rates.

The government Uganda also said they would urgently pay arrears it owed the private sector through returns from Value Added Tax (VAT).

“To address emergencies on liquidity and other financial constraints suffered by government suppliers, the government will pay arrears of $633.4 billion commencing July 2020. Priority will be small and medium enterprises,” said Mr Kasaija.

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The government of Uganda has increased import duty on agricultural products to 60 per cent and other products to 35 per cent in a bid to raise revenue.

The total import bill in Uganda is $7 billion per year.

During the presentation of Uganda’s budget for the financial year 2020/21 the finance minister Matia Kasaija said: “In order to promote import substitution and the development of local industries, we have increased import duties on goods that are produced or can be produced locally.”

Mr kasaija said that the import duty on agricultural products has been increased to 60 per cent and other products to 35 per cent.

The finance minister also said that modest tax rates adjustments that have been made include removing ambiguity in the legislation, the excise duty rate on fuel, support compliance and emoving any loopholes that may lead to revenue loss.

He said that VAT will …