Finance minister Maria Kiwanuka today unveiled a 15 trillion Uganda Shillings Budget for the financial year 2014/15, up from 13 trillion in the 2013/14 financial year.
Domestic revenues including taxes and borrowing will finance over 80 percent of the budget, of which most has been allocated to roads and energy infrastructure. To meet this increasing government expenditure, Kiwanuka proposed new tax measures on mobile money withdrawals, sports betting, petrol and diesel.
Sugar prices have been declining for the last one year, which contributed to a reduction in inflation. The increase in excise duty could lead to a rise in the price of sugar. She also proposed capital gains tax on the sale commercial property.
Kiwanuka also brought back the proposal to impose 200 Uganda Shillings on a litre of kerosene. This proposal was in the 2013/14 budget but was rejected by Members of Parliament late last year.
On sports betting, Ugandans who win money will be required to part with 15 percent of the money as tax. These measures are expected to raise close to 200 billion Uganda shillings in the next financial year.