Issue 719 - Page 25

the way they are going about it that is misguided .”
Museveni said given the demand for oil and gas remains as high as ever , “ It is clearly time for a rethink on how the transition to green energy should be approached .”
Earlier in March , Sidronius Okaasai Opolot , Uganda ’ s state minister for Energy re-echoed the pro-fossil fuel exploitation position saying there is need for the energy transition to be contextualized to sync with the actual reality and the needs of the African continent .
Okaasai , who spoke in Houston , Texas , during the CERAWEEK 2022 meeting , an annual gathering of global energy industry leaders , said there is need to provide an enabling and sustainable exploitation of the oil and gas resources .
“ We think that Africa needs special treatment through the provision of financing , technology and capacity building aimed at sustainable exploitation of its energy resources including fossil fuels while striving to minimize emissions .”
According to the African Energy Chamber ’ s first quarter State of African Energy report 2022 , capital expenditure in Africa declined from US $ 60bn in 2014 to US $ 22.5bn in 2020 , noting that significant levels of investment especially from African financial institutions are still required .
Coincidentally , organizations such as the Afreximbank have already made notable progress to drive oil and gas project developments in Africa . At the end of 2020 , Afreximbank ’ s total assets and guarantees stood at US $ 21.5bn , with shareholder funds amounting to US $ 3.4bn in the energy sector . Other institutions including the African Development Bank – with an active portfolio of projects upwards of US $ 12bn – also represent critical providers across the African energy sector .
However , more needs to be done , and if large-scale discoveries such as those made in Namibia and Ivory Coast are to be sufficiently developed , more capital needs to be made available .
The proposed African Energy Bank will operate in the same way as the APPO-created Africa Energy Investment Corporation – a developmental financial institution created to channel resources towards the development of Africa ’ s energy sector .
The bank will also serve as a vessel for mobilizing African-sourced finance . Rather than utilizing international banks for pension funds , the bank will serve as an investment corporation that will channel these funds into African projects , thus , ensuring high returns of investment while developing Africa ’ s energy sector to drive socio-economic growth through increase in energy access .
The APPO ’ s members include Algeria , Angola , Benin , Cameroon , Chad , Congo , DR Congo , Egypt , Equatorial Guinea , Gabon , Libya , Niger , Nigeria and South Africa .

URA ’ s nine-month tax collection hits Shs15.4tn

By Julius Businge

Total tax collections for the nine months of FY2021 / 22 increased by Shs 1.4 trillion to Shs 15.4trillion compared to the same period last financial year , but fell short of the Shs16.5trillion target .

The taxman agency said its domestic revenue collections stood at Shs9.4tn against a target of Shs10.6tn . However , this represented a growth of Shs816bn ( 9.42 %) as compared to the same period in FY2020 / 21 .
Major surpluses were registered in PAYE ( Shs248bn ), casino tax ( 14.70bn ) and tax on bank interest ( 2bn ). Shortfalls were mainly incurred in corporate tax ( Shs200bn ), withholding ( Shs142bn ), rental tax ( Shs120bn ), and treasury bills ( Shs45bn ) majorly due to COVID 19 restrictions that led to supply chain disruptions , low aggregate demand in the economy and thus reduced profitability .
PAYE contributed the most to direct domestic taxes collections registering a growth of 15.50 %, followed by corporation tax .
The indirect tax collections for the period July to March were Shs3.6tn . A growth of Shs341bn ( 10.48 %) was realised compared to the same period in the FY 2020 / 21 . At tax head level , VAT collections stood at Shs2.3tn , registering a shortfall of Shs504bn and a performance of 82.59 %. A growth of Shs224bn ( 10 %) was realized .
The URA also witnessed under performance in the construction sector by Shs74bn , beer Shs49bn , spirits / waragi Shs48bn , soft drinks Shs43bn and real estate activities Shs43bn .
However , the tax authority registered a major surplus in phone talk time at Shs43bn . The local excise duty collections were Shs1.2tn registering a shortfall of Shs210bn , a performance of 85 % and a growth of Shs117bn ( 10 %). It however , witnessed shortfalls in beer by Shs50bn , spirits by Shs52bn and internet data by Shs35bn .
The URA registered surpluses in levy on mobile money withdrawals by Shs30bn ,
BusiNess

Finance ministry expects the tax agency to collect Shs22.3trillion in FY2021 / 22

mobile money transfers Shs8bn and sugar Shs7bn .
The Non-Tax Revenue collections ( i . e levies on driving licences and others ) were Shs974bn against a target of Shs1.1tn , posting a shortfall of Shs167bn and a performance of 85 %.
International tax collections
International trade tax collections for the period July to March 2022 were Shs6.2tn against a target of Shs6.1tn , posting a surplus of Shs64bn , and a performance of 101 %.
Customs tax collections grew by Shs686bn ( 12 %) in July to March of FY2021 / 22 , in comparison to the same period last year . The performance was mainly attributed to growth in vatable goods by 13 % ( Shs1.4tn ) in the period July to March 2022 compared to the same period last year .
The top five sectors during the reporting period were wholesale and retail , manufacturing , financial activities , information and communication and public administration and defense ; and they generated 74 % of the total revenue .
During the period of July to March of the FY 2021 / 22 , a total of 538,275 new taxpayers were added to the taxpayer register to end the period at 2,321,828 .
John Rujoki Musinguzi , commissioner general at Uganda Revenue Authority said on May 9 that revenue agency has to collect an additional Shs5.9 trillion .
“ We are optimistic that we shall meet this target ,” he said .
However , tax experts including Henry Bazira , a member of the ‘ The Tax Justice Alliance Uganda ’ said , URA ’ s future performance has a direct correlation with government ’ s tax policy agenda .
He said , unnecessary incentives to investors must be stopped to enable the country register more tax revenues and support service delivery . He also urged the government to walk the talk on compiling the cost-benefit analysis reports on tax incentives before they are offered to “ the so-called foreign investors .”
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