Sunday 22 July 2018

OTT and MM Taxes: Tumwebaze, lets raise money by cutting costs



 Debating Cost Cutting Measures

 The ICT Minister, Hon. Frank Tumwebaze was in news chiding unpatriotic Ugandans for using VPN to override the OTT tax considered repressive and oppressive. Frank may have suffered a convulsion of reality in his quest to tax Ugandans unnecessarily even for social media services that his government does not offer or own.

Before we talk additional taxes, Frank must first think of cost cutting measures within his government to save money and avert unnecessary borrowing or taxes.

Most of what Mr. Museveni called "rumouring" on social media are public scrutiny of his strange policies such as over taxation, waste, cruelty, inefficiency, greed, sectarianism and extravagance. This government is suffocating with a budget for public administration and loan servicing – two of most avoidable costs to the tax payers.

 First, let us reduce the size of government. A minimalist government can often be efficient and cost effective. The cost of public administration has gone way too high for a government that depends on foreign aid, loans and grants. It is unsustainable.

When you look at the number of Ministers (31) and their deputies (49) alone, the burden of sustaining them places wanton burden on public purse.

We then have a stadium of unhelpful, insensitive, unapologetic, unconscionable and greedy MPs who even sneer and scorn at their impoverished electorates. They are not worth the money they earn. In fact, this 10th Parliament has not been helpful since every decision they have made are anti-people, and majority of whom are NRM are bound by collective responsibility.

The difference between Idi Amin and Museveni is that Amin was honest enough to rule Uganda without Parliament. Museveni prefers to use them as his symbol of power, manipulate and chump them up at a high cost to the public.

Another avenue for leaks is through the balkanization of districts into smaller dependent units. These district administrations are unsustainable to finance districts since they are unproductive. Uganda now has about 130 districts, out of which, only 4 or 5 of them are productive enough to sustain their own budgets. The rest depend absolutely on central government for all their expenses.

These districts were supposed to bring services closer to the people. Instead, they suck up valuable resources meant to improve services. The constant decay in public service across the country is evidence that decentralization needs a rethink.

This government leaks uncontrollably given the high levels of rent seeking (corruption), nepotism, and cronyism. At least the finance Minister has realized that corruption is now institutionalized.

The magnitude of corruption happening in Uganda is of World Cup proportions.

By putting in place practical and radical measures to stem corruption, Uganda could maximize public resources to meet the budgetary objectives.

The lavish lifestyles of our leaders must also be reduced, radically. The President flies an expensive personalized jet, and travel with a convoy of motorcades that add unnecessary costs to public purse given his already elaborate security details.

We have an assortment of Presidential advisers and RDCs with their deputies and assistant deputies all hooked up on public purse while duplicating duties of one another.

Then a coterie of security agencies from the villages to the district, all doing one thing – security in a country where insecurity is commonplace.

The informal economies operated by regime minders evade taxes; costly foreign trips, medical services abroad, and the various tax holidays lavished to suspicious investments could be reviewed.

I am not supporting taxes on social media access or on mobile money. It hits the poor the most. The government should introduce cost cutting measures to save money for national development. It is unfortunate that whenever we want money we turn to mooting cruel tax regimes.

Hon. Frank, before you kill us with taxes, let us debate cost cutting measures.

End





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