The Uganda Revenue Authority is expected to collect 5,344 billion shillings in the 2010/2011 financial year which will fund more than 60% of the 2010/2011 budget for Uganda.
The Minister of Finance, Planning and Economic Development, Syda Bbumba says the government of Uganda will not introduce any new taxes but provide stability for the business and tax system to generate more revenue for the government to delivers services.
Bbumba said the government will undertake amendments to improve tax collection. She instead announced tax reductions which she said are aimed at making transport for ordinary Ugandans more affordable.
Bbumba announced a reduction in registration for boda boda motorcycles by 80,000 shillings from the current 240,00 shillings. She also ordered the Uganda Revenue Authority to decentralize registration of vehicles and boda bodas to save people the high cost of coming to the capital Kampala to register vehicles and motorcycles.
The Minister of finance also removed VAT on software license to improve information and communication technology usage in the country.
Bbumba revealed that East Africa finance ministers had held pre budget consultations and agreed to suspend a 20% charge on buses moving between countries, and maintain a common structure of external tariff. They also agreed on putting in place a joint infrastructure fund to help improve infrastructure in EAC member countries of Uganda, Rwanda, Tanzania, Kenya and Burundi.
She said they had also agreed on a duty remission for industrialists for one year, and continue a tax exemption on trucks and pick-ups which support agriculture to enable farmers transport produce easily to markets. Bbumba also announced suspension of the 22percent tax on inputs.