What you need to know:
- Income. Government has provided a number of taxes under the Income Tax Amendment Bill through which Uganda will earn from the oil and Gas sector as a country.
Sunday, 20 March 2022 06:00
How govt will earn from oil, gas sector
Now that the oil development stage has started, it is easier to connect the dots on how the private sector will directly benefit from the resource.
A number of contracts have been drawn while hundreds or even thousands of others, are still in the pipeline.
However, beyond individual or company level benefits, the question is; how does Uganda, as a country, earn from the oil and gas sector?
Pamela Natamba is the head of oil and gas division at PricewaterhouseCoopers (PwC).
In her assessment, as a country, during the development stage, Uganda will mainly earn through taxes, given that there will be no commercial production until 2025.
Therefore, she notes, such earnings have been provided for in the Income Tax Amendment Bill, which particularly focuses on the oil and gas sector.
“That Bill has made specific provisions, but one of them which is very interesting is it introduces a Windfall Tax,” she says and notes that this tax will apply to licensees that have signed Petroleum Sharing Agreements, many of which have been involved in exploration up to the point of production.
These, she says, include large companies such as TotalEnergies, CNOOC and Uganda National Oil Company (UNOC), among others.
What the Bill puts in place, Natamba says, is that as long as you earn revenue in excess of a certain amount, you will be subjected to a Windfall Tax.
For instance, she explains, if international oil prices are expected to go for a certain amount you a company sells beyond what has been projected, the expectation is, the company will pay an extra tax over and above 30 percent.
Published in
Energy
Sunday, 20 March 2022 06:00
Bobi Wine unloads on SMACK over son’s suspension, segregation
What you need to know:
- Altruism and empathy involves an examination and respect for diverse perspectives and an ethic of social service to address local and global issues in a peaceful manner. Today these skills are necessary not just for a few Ugandans, but for most of the world’s population.
In 2014, my colleagues and I wrote a paper, “The Economic Aspects of Child and Human Sacrifice.”. Whenever the word ‘child sacrifice’ was mentioned, the quickest things that run through one’s mind were rituals, body mutilation, killing, murder, and witchcraft, among other things often associated with sacrificial rituals. These were usually believed to have economic benefits such as wealth and prosperity, fueled by poverty and trickery by traditional healers.
Today, citizens are being killed, some with no specific economic gains attached. In the 2020 Uganda Police Report of April 19, 2021, 4,460 people were killed in 12 months, translating into at least 12 murders daily, through assault, poisoning, shooting or mob action. According to Grace Akullo (Daily Monitor May 27, 2019), the reason behind such murders include land wrangles, business rivalry, delayed justice and family disputes, while jealousy, greed, poverty, anger and, poor security are suspected to perpetuate the murders (Daily Monitor Wednesday September 4, 2019, p.16).
These murders of innocent citizens in Uganda raise some questions. In what ways did the education of the offenders nurture them to take the lives of innocent civilians who are not engaged in war or combat? How did the teaching received at home and school shape such prejudiced and inhuman acts towards their humanity? To what extent has the education of people prepared them to be good citizens - socially responsible people, respecting the rights of all individuals and promoting a safe, just and peaceful society for all people to live. The answer is somehow clear: homes, schools and colleges in Uganda and probably around the world may not be adequately preparing their students and other citizens to understand the nature of shared humanity - planetary citizenship.
Credit: Daily Monitor
Published in
Lifestyle
Wednesday, 12 June 2019 08:22
Court refuses to block Kiruddu sewage plant
Kampala. Court has dismissed an application seeking to block a government entity from constructing a sewage treatment plant to mitigate the irritating stench at Kiruddu Hospital in Kampala.
On May 5, the Assistant Registrar of the High Court Land Division, Ms Justine Atukwasa, ruled that the construction of a sewage treatment plant is meant for the greater good of the wider public which should not be stopped.
The registrar added that if in its final judgment court finds that Mr Steven Lwanga, who is claiming ownership of part of the land is the rightful owner, he can be compensated.
“The question would be what is the threat here that would render the applicant’s main application and the matter nugatory that it cannot be addressed through the award of damages? I do not find any such threat. He still has remedies at disposal including compensation for his equitable interest,” Ms Atukwasa ruled.
She continued: “In conclusion, therefore, bearing the above consideration in mind, I have come to the finding that this is not a fit and proper case for the application of interim injunction to be granted.”
The registrar further explained that court declined to issue a temporary injunction against government halting the construction of the sewage plant because it does so only in compelling circumstances.
Mr Emmanuel Ainebyoona, the spokesperson of the Ministry of Health, said following the court ruling, they are waiting for the National Water and Sewerage Cooperation to commence the construction of the treatment plant.
“This land was given to the ministry by Buganda Land Board which promised to sort out all third party claimants. So, we are now waiting for the National Water and Sewerage Cooperation to commence the construction of the waste treatment plant,” Mr Ainebyoona said yesterday.
In his petition, Mr Lwanga had sought for an interim injunction blocking Buganda Land Board (BLB) and Kampala Capital City Authority (KCCA) or their agents from further trespassing on the contested land measuring 2.75 acres in Valley Zone, Salama Parish in Makindye Division where the treatment plant is set to be constructed until his main case has been concluded to determine his claim of ownership.
Mr Lwanga is claiming the land which was also formerly claimed by a one Serufusa who acquired it from Prince Richard Nakibinge of Kabaka, Sir Daudi Chwa lineage.
In February this year, following complaints from the residents about the terrible stench at Kiruddu Hospital, government and BLB negotiated to acquire the 2.5 acre land to build a sewage treatment plant to remedy the problem.
The BLB offered a lease to government through KCCA. Early this year, the area MP Allan Ssewanyana and the residents held a demonstration to protest the stench. Police arrested the MP.
Once the treatment plant is completed, the sewage from the hospital will be channelled directly to the plant since the current septic tanks cannot contain the huge sewage discharge from the hospital.
Credit: Daily Monitor
Published in
Media
