Bank of Uganda in Kampala. The IMF forecast Uganda’s growth at 5.8 per
cent in the financial year beginning today up from 5.3 per. PHOTO |
FILE
By GEOFFREY IRUNGU
In Summary
- IMF says the country is on the right path in terms of improving efficiency in spending including providing money for priority infrastructure.
The International Monetary Fund (IMF) has endorsed
tax reforms similar to Kenya’s targeting the informal sector and the
removal of exemptions by Uganda.
Kenya under IMF tutelage introduced turnover tax in 2010 to enforce compliance by the informal sector.
“(IMF) directors welcomed the tax reform package,
and endorsed plans to extend the tax net to the informal sector,
strengthen tax compliance and enforcement, and eliminate discretionary
tax exemptions,” the fund said.
In a press statement released on Tuesday, the IMF
said the country was on the right path in terms of improving efficiency
in spending including providing money for priority infrastructure.
“Directors endorsed the authorities’ fiscal policy
stance focused on enhanced revenue mobilisation and public spending
efficiency, to create room for priority social and infrastructure
investment,” said the IMF.
It is expected that higher economic growth will help the country generate more tax revenues.
The IMF forecast Uganda’s growth at 5.8 per cent in the financial year beginning today up from 5.3 per.
“The outlook is promising. Growth is estimated at
5.8 per cent in the financial year 2015/16 and an average 6.3 per cent
over the medium-term, driven by scaled-up public investment and a
rebound in private demand,” said the IMF.
The growth however will come at a cost of higher
inflation. The IMF projected that inflation would stand at 6.4 per cent
by the end of this fiscal year, up from 5.6 per cent. Core inflation
will even be higher at 6.7 per cent by next June, up from 6.1 estimate
for last month.
The Bretton Woods institution noted Uganda had
scaled up development projects, but asked it to be transparent in
project selection
No comments :
Post a Comment