Page 14 - Adam Mugume News Today : Breaking News, Live Updates & Top Stories | Vimarsana
Dividend payout will depend on BoU s approval, banks say
monitor.co.ug - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from monitor.co.ug Daily Mail and Mail on Sunday newspapers.
What postponing bonds payment at maturity means for investors
monitor.co.ug - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from monitor.co.ug Daily Mail and Mail on Sunday newspapers.
Daily Monitor
Tuesday February 16 2021
Customers observe social distancing in a banking hall. Government is proposing a 0.5 per cent tax on cash withdrawals in the next financial year to raise revenue for the economy. The move has been rejected by the already burdened taxpayers. PHOTO/KELVIN Atuhaire
Summary
The proposed 0.5 per cent tax on cash withdrawals discourages people from making deposits and forces those who get paid in the bank to withdraw all their cash and keep it
Christine Kasemiire & Dorothy Nakaweesi write.
Advertisement
#Rejecttheunjusttax; a harsh tag where like-minded Ugandans raised concerns about the tax proposal that government through Ministry of Finance had hatched, garnered more than 4,000 tweets last week.
Taxing bank withdrawals will be harmful to economy - BoU
Friday February 12 2021
It is not yet clear how government will seek to go about this but sources within the Ministry of Finance say there is a proposal to introduce a 0.5 per cent levy on each bank cash withdrawal. PHOTO | FILE
Advertisement
Taxing cash withdrawals from banks will be detrimental to the economy, Bank of Uganda has said.
This comes in the wake of a February 9 letter in which government is seeking guidance on a proposal imposing a tax on bank withdrawals.
In a response to emailed questions yesterday, Dr Adam Mugume, the Bank of Uganda (BoU) executive director research, told Daily Monitor the proposed move will negatively impact deposits and penetration, which continues to be below average.
Remittances fell by $200m for the year ended December 2020, highlighting the impact of Covid-19 within and without Uganda.
According to data from the Central Bank, Dr Adam Mugume, the Bank of Uganda executive director research, said remittances from abroad reduced to $1.2b down from $ 1.4b in the period ended December 2019.
However, he did not explain the cause of the reduction but indications are that Covid-19 could have had a big impacting eating away $200m and slowing down one of Uganda largest foreign exchange sources.
Remittances have been steadily growing over the past five years as Uganda increases its workforce abroad, especially in the Middle East, which in the last three years has overtaken other regions as Uganda’s largest foreign exchange sources.
vimarsana © 2020. All Rights Reserved.