Tumukunde the 'he' it's possible slogan popularly know as KISOBOKA NE UGANDA EYENKYA who was addressing the media today before he set off for his campaign in Kakumiro, Kibaale and Kagadi 'Bunyolo Region said that, Uganda remains a net importer however putting pressure on our local currency as Ugandans buy foreign currency to import goods and services.
The Renewed Uganda, Tumukunde adds that high cost of credit with average cost of credit/rate in the formal financial sector at over 19 percent Interest for local currency loans it doesn't sustain small scale business.
"Economy is recession as exemplified by the low spending power rate of foreclosure and bankruptcies, less than 1 percent of locally owned enterprises worth over USD 100Million. Unfair and exploitative tax regime burdening the few compliant taxpayers to sustain the excessive, mismanaged and largely foreign debt driven government expenditures" Tumukunde told the media.
Tumukunde went ahead and gives example of a blanket application of value added tax at 18 percent introduction of over the top (OTT) tax on internet access and mobile money tax which increase the cost of goods and services that mounting affections to the poorest household.
Meanwhile Tumukunde explains that its unfair so called investment policy favouring foreign over local investors. As demonstration by the discretionary award of tax incentives to foreign investors without capital flight controls, Public procurement bias towards foreign firms for large capital projects.
"Access to affordable credit has not been a deliberate priority of the government as the banking sector is controlled by the foreign owned private commercial banks. Low investment in agro technology, lack of policy on food preservation, neglect of high valvy traditional and non traditional foodstuffs, low and discriminative access to affordable farm inputs, dependency on rain-fed agriculture, lack of technology-based agriculture to ensure food and nutrition security, failure to establish food supply chain linkage and value-addition processes, insufficient investment in invention and innovation lacks in new Uganda" said Tumukunde
He point that, investment in key sector capable for boosting foreign exchange earning, fast tracking import substitution, driving down the cost of doing business and with a greater potential to generate economic multipliers such as valve adding light manufacturing and mathematical sciences remains low.
Uganda has attracted oul and exploration companies, some of which awarded contract's without following transparent procedures. However we need to identified at least 20 economically significant oil fields in Western Uganda estimated to hold between 1.5 and 2.5 billion barrels of oil, equivalent to USD57-95Billion. If fully developed. "This could place Uganda among the foremost African oil producers with high and improved quality development to all individual Ugandans". Said Tumukunde