By Philip Wafula
Farmers are set to reap from Uganda’s Ushs 30 trillion budget for the Financial Year 2017/18, The CEO Magazine has learned. According to the budget estimates being discussed by parliament, Agriculture has been allocated Ushs 846.7 billion compared to Ushs 823 billion in the previous financial year. If deliberations are made and passed, it will see taxes levied on irrigation equipment and animal feeds scrapped off.
President Museveni has been a staunch advocate of modest irrigation techniques that have seen him traverse the rural countryside educating farmers on the unconventional irrigation regimen given the fact that the ongoing rains haven’t saved the situation as many farmers are already counting losses.
With food and cereal prices ion the horizon countrywide due to extended drought and ruthless army worm, residents are starving – a condition that has led Government to scrap taxes of agricultural inputs, animal feeds and premixes summarily. The Government also wants VAT exemption on crop extension services.
While appearing before the Parliamentary Budget Committee, Planning State Minister, David Bahati, and Director Budget at Ministry of Finance, Kenneth Mugambe said the removal of the said taxes is intended to promote animal husbandry and reduce costs of agricultural inputs. It is however imperative to note that Government stands to lose Ushs 10 billion in tax revenue following the scrapping off of taxes on the said agricultural items.
