TAXA TA XATI TION ON AN AND T D THE HE END ND OF AI F AID D - - PowerPoint PPT Presentation
Uganda Revenue Authority DEVELOPING UGANDA TOGETHER TAXA TA XATI TION ON AN AND T D THE HE END ND OF AI F AID D DE DEPEN ENDENCE DENCE FO FOR AF AFRICA CA Allen Kagina, Commissioner General URA June 2011 Structure of
Allen Kagina, Commissioner General URA
June 2011
Uganda Revenue Authority
DEVELOPING UGANDA TOGETHER
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countries is a contentious issue that often evokes emotions in Africa as well as within donor communities .
long term financing for sustainable development and it is the life blood of all state governance such as the provision of public goods and services.
to fully finance their expenditure through this hence the aid.
to Africa, promotes the strengthening of tax administration or is simply a substitution effect?
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export of cheap raw materials yet imports are costly.
education.
peoples products.
excessive dependency caused by lack of industrial capacity, science &technology , management skills and financial resources.
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in existence since 1960.
the oil and food crisis in the 1970s led to increase in volume.
fiscal pressures in DPs economies.
MDGs support and debt relief to HIPC Countries.
23.5% 22.6% 23.9% 26.7% 29.9% 28.2% 26.5% 32.5% 28.4% 26.9% 28.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Share of Aid to Africa to total ODA Disbursement Aid Disbursement (US $ Millions) Africa Total Share of Africa to Total
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development aimed at achieving the MDGs by 2015.
from 22.6% in 05 to 33.4% in 09.
from 3.2% in 05 to 5.8% in 09.
infrastructure increase from 6.4% to 8.6%
consumption rather than investment (Paul Collier)
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4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2005 2006 2007 2008 2009
Trend of Aid allocation
100: SOCIAL INFRASTRUCTURE & SERVICES 200: ECONOMIC INFRASTRUCTURE AND SERVICES 300: PRODUCTION SECTORS 400: MULTISECTOR 500: PROGRAMME ASSISTANCE 600: ACTION RELATING TO DEBT 700: HUMANITARIAN AID 998: UNALLOCATED/UNSPECIFIED
strategy in terms of fiscal and macroeconomic responses for effective aid absorption. The two main areas are:
– The fiscal sphere influenced by recipient governments – The monetary and exchange rate sphere under the central banks focusing on concerns of exchange rate appreciation, price fluctuations interest rates etc.
wide approaches for delivering aid.
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by resource-related tax revenues, that typically distract governments from generating revenue from more politically demanding forms of taxation.
informal sector and exemptions.
policy is often the art of the possible rather than the pursuit of the optimal” (Tanzi and Zee)
20.00 30.00 40.00 50.00 60.00 70.00 2000 2001 2002 2003 2004 2005 2006 2007
Taxes as % of GDP
Kenya Lesotho Mauritius Seychelles Uganda South Africa OECD Average Africa Average
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public sector in Africa)
the tax base through the use of incentives.
requirements
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with support of IMF and World bank.
– Set up the authority – Introducing VAT (June 1996) and VENUS system – Strengthening the internal management systems of the administration and training – Improving the customs infrastructure -ASYCUDA
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grown at a 5 year average
15% in the period prior to the reforms.
government expenditure increased from 55.2% 04/05 at the time of the most recent reform to 67.9% in 2009/10
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51.1% 48.3% 53.2% 52.5% 55.2% 60.0% 59.0% 63.5% 65.0% 65.5% 67.9%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
2,000 3,000 4,000 5,000 6,000 7,000 8,000 % Contribution to Government Expenditure
Govt Exp Domestic Revenue % contribution of TaxRevenue to Central Government Expenditure
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Reform Tax Payer Country 1
(URA Net) for both voice and data
Quick service and easier communication
Efficiency gains in the tax administration.
2 Electronic Tax Administration platform for Domestic Taxes (E-Tax). Real time access to URA facilities resulting in reduced cost of compliance
Efficiency gains in the tax administration. Modernisation of economy.
3
Revenue Authorities Digital Data Exchange (RADDEx) Pre lodging leading to reduced delays in cargo clearing and transiting. Streamlined cumbersome customs and trade facilitation procedures Fraud prevention
4
Tax Payer Education / Tax curriculum Improved relationships with taxpayers/better understanding of tax law Better sharing of information with taxpayers./ Educated population
5
Balance score card Client focused work force Efficiency gains in revenue administration .
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Integrity enhancement Lowered incidences of corruption
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Capacity building Working with skilled URA staff Increase in revenue due to improved URA staff skills
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Reengineered processes Enhanced service delivery More efficient use of resources
budget support from 40% in 2008/09 to 60% in 2010/11 .
thus saving time, reducing supply chain transaction costs , reduce duplication efforts , enhance border security and increase revenue among others.
barriers along the Northern and southern corridors is critical for trade expansion and economic growth in the sub region. DFID study estimated a cost of US $ 4.1 billion.
increase domestic consumption. Uganda electricity consumption 69.5KWH while Africa average 578 KWH , has cost URA Ugx 283.66 Bn for 5year period to 09/10 on diesel refund for power generation.
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Initiative Benefit to Africa 1 Sponsor reforms in tax legislation Increase in domestic revenue mobilization and improved governance for sustainable economic growth 2 Support creation of African financial and goods markets Boost local savings as well as attract more investment 3 Prioritize central government’s expenditure to areas that are crucial for development and promote accountability
Revenue channeled to areas that boost the level of economic growth/ reduced corruption 4 Ensure skills development is undertaken as a national priority. Improved quality of labor in Africa to meet the needs of the growing industrial and services sector. 5 Private sector involvement in development. environment that attracts investors and ensures sustainability of economic initiatives 6 Increase aid for trade i.e. trade corridors, one stop borders sharing of information etc. Addresses trade capacity constraints, promotes trade, and improves Africa’s trade competitive
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