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The International Monetary Fund (IMF) has urged government to introduce Value Added Tax (VAT) on fuel products as part of a broader strategy to strengthen domestic revenue mobilization and improve fiscal sustainability. In its Uganda: Post-Financing Assessment Discussions report, the IMF highlights that Uganda continues to collect less tax revenue than its potential, largely due to a narrow tax base and numerous exemptions in the current tax regime, stressing that broadening the tax base is essential to close gaps in revenue relative to regional peers. Under existing law, fuel and petroleum products are VAT exempt. But instead, government currently charges…
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Uganda has set an ambitious target to raise UGX 37.2 trillion in domestic revenue in the Financial Year (FY) 2025/26, representing a sharp increase from the projected UGX 31.9 trillion in FY2024/25, as the government intensifies efforts to reduce dependence on debt and external financing. Delivering the budget speech at Kololo Independence Grounds, Finance Minister Matia Kasaija said the domestic revenue target will account for 60% of the national budget, with the balance to be met through a mix of concessional loans, domestic borrowing, and grants. The government is banking on stronger tax administration, increased economic activity, and digitised systems…
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