East African Community member states — Uganda, Tanzania, Kenya, and Rwanda — presented the 2018/2019 budgets before their respective parliaments on Thursday afternoon.
The MPs are expected to debate and approve the budget proposals.
The governments’ financial year starts on July 1.
EAC Budget Day’s theme was "Industrialisation for Job Creation and Shared Prosperity".
• Economy expected to grow by at least 5.8 per cent this year.
• Fiscal deficit projected to narrow to 5.7 per cent of GDP from estimated 7.2 per cent of GDP in the current financial year.
• The deficit to be financed by external debt ($2.97b) and domestic debt ($2.72b).
• Proposed amendment of Employment Act to provide that employers contribute 7.5 per cent for housing while employees to give 0.5 per cent from their pay.
• Import duty on iron ore and steel, paper and paper products increased from 25 per cent to 35 per cent. The increase is meant to make local products more competitive.
• Excise duty on private vehicles above 2500cc diesel and 3000cc petrol goes up from 20 per cent to 30 per cent to promote local assembly.
• Tax on mobile money transfer charges increases from 10 per cent to 12 per cent, proceeds to fund universal health care.
• Money transactions of $5,000 and above through financial institutions to attract a 0.05 per cent ’Robin Hood’ tax.
• Economy expected to grow by at least 7.2 per cent this year.
• Budget deficit projected to be 3.2 per cent of GDP in 2018/19 compared to the likely outturn of 2.1 per cent in 2017/18.
• Tax on sanitary pads removed to make the product available and affordable to women and girls, particularly school girls and rural women.
• Proposed amendment of Income Tax Act to reduce corporate tax to 20 per cent from 30 per cent for new investors in pharmaceutical and leather industries for five years from 2018/19 up to 2022/23.
• Gaming taxes increased as follows: from 6 per cent to 10 per cent on gross sales in sports betting operations; from $14 to $44 per machine/month on slot machines; from 15 per cent to 18 per cent on gross gaming revenue for casinos.
• Economy expected to grow by 5.8 per cent this year.
• Budget deficit projected to be 4.8 per cent of GDP this year.
• Total projected revenue is $4.3 billion with the revenue authority expected to collect $4.1 billion and the rest from non-tax sources.
• Domestic borrowing estimated at $464 million, donor support at $75 million, and external borrowing projected at $2 billion with $1.6 billion to be raised from loans and $412 million from grants.
• Economy expected to grow 7.2 per cent this year.
• Budget expected to be financed 67.5 per cent through domestic resources, 16 per cent loans and 16 per cent grants.
• Revenue authority estimated to collect $1.6 billion. Non-tax revenue projected at $181 million while grants at $461 million.
• Recurrent expenditure is expected to increase to $1.4 billion from $1.3 billion.
• Development budget and net lending is estimated at $1.3 billion.
Src : The Easterafrican