PHONE TAX NOT IDEAL

I have learned that Hon. Ekanya has moved a proposal to introduce Phone Tax of 5,000/= per year on every holder of a phone. In his argument, he stresses that this will increase government revenue and this came up because the EC wanted salary increase which money Ministry of Finance did not have at the moment!

I think there is need for an objective test rather than the subjective while dealing with issues of taxes. 5000/= may look so small to Hon. Ekanya but very much to some one else. There is a new trend of shifting burden to tax payers in this country, first it was tax on kerosene for the reason that Diesel was being adulterated and yet we have a fully mandated institution, UNBS responsible for quality but again the Minister had to shift the burden to the tax payers!

We already pay taxes when buying a phone, its accessories and also VAT on airtime, isn't this enough? I am sure the cost of collecting such tax will be more higher than the revenue and this is against the canon of economy of taxation and with this trend of abuse and misuse of tax payers money, we don't need another tax involving phone usage because even the justification that it will encourage Ugandans work hard is defeating because a country with 83% unemployment rate cannot guarantee employment for everyone.

I invite the Honorable to revisit the principles and canons of a good tax regime and I am sure he will find it useful!

Michael Aboneka Jr

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