Everest Kayondo, the Kampala City Traders Association chairman. File photo
As the
country partially opens up businesses that had remained closed for at
least the last two months, manufacturers have asked government to
institute radical measures to reboot the economy.
Speaking
during an online discussion, early this week, Mr Richard Mubiru, the
Uganda Manufacturers Association (UMA) economic policy committee board
member, said manufacturers are working at an optimum of about 30 per
cent, which calls for radical revival measures.
“Covid-19
has made the manufacturing base weaker. We are now operating at only 30
per cent. We have seen the health minister, Jane Ruth Aceng at the
forefront of fighting this pandemic. We now need another equivalent of
Minister Aceng to lead the economic recovery,” he said during an online
discussion organised by lawyer Bernard Oundo under the theme: “The
impact of Covid-19 on trade and tax.”
Ms Aceng has since March been at the fore front of the fight against Covid-19, which was first confirmed in Uganda on March 22.
During
the discussion, Mr Mubiru cautioned government against financing more
administrative units in form of new cities and instead divert the money
towards economic recovery, much of which has been damaged by Covid-19.
“I hear government is going to start financing several new cities starting in the new financial year [2020/21].
I propose that that money is sank into the manufacturing sector and the economy at large,” he said, noting there was no need to rush with creating more administrative units at a time when revenue collection and jobs are under threat
I propose that that money is sank into the manufacturing sector and the economy at large,” he said, noting there was no need to rush with creating more administrative units at a time when revenue collection and jobs are under threat
Mr Everest Kayondo, the Kampala City Traders Association
chairman, urged government to design policies that will shield people’s
businesses from collapse.
He said people have during
the Covid-19-related lockdown, spent part of their capital thus many of
them will find it hard to pay accumulated bills such as rent, utilities
and other tax obligations.
“Just imagine a trader who
had capital of let’s say Shs6m before the lockdown, he has not worked
for close to three months and yet the rent they pay is a lot. If
government does not intervene in this matter, another crisis will
emerge,” he said.
However, Mr Moses Kaggwa, the
director of economic affairs at the Finance ministry, said government
was in high level talks and Cabinet would soon come out with a position
in regards to an economic stimulus.
He also said it
was not easy for government to intervene some aspects such as rent given
the private arrangements between the tenant and the landlord.
“There
was no state of emergency. We cannot say landlords should exempt
tenants from their rent obligations because they also say, they have
bank loans to service, which loans haven’t been waived,” Mr Kaggwa said.
Tax obligation
Mr Dicksons Kateshumbwa, the Uganda Revenue Authority (URA) commissioner for domestic taxes, said that whereas they understand the current economic challenges, they expect those with tax obligations to find a way of working on them.
Mr Dicksons Kateshumbwa, the Uganda Revenue Authority (URA) commissioner for domestic taxes, said that whereas they understand the current economic challenges, they expect those with tax obligations to find a way of working on them.
“We are cognizant of what
people are going through but about rental tax, it is our opinion that
you self-regulate your business and remit that tax according to how much
rent you have collected,” he said.
awesaka@ug.nationmedia.com
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