• Latest

Foreign Capital and Taxation as a matter of National Interest

November 20, 2021

1,300 Candidates Battle for Just 31 Jobs at OAG

August 2, 2025
Motorcycle Dealers Asked to Issue ISO Standard Helmets Per Sale

Seku applauds boda boda leaders for championing Patriotism

August 1, 2025
VINAStech Advert
Dr. Ayo Appointed New World Bank Country Director for Uganda

Dr. Ayo Appointed New World Bank Country Director for Uganda

August 1, 2025
Bridging the Protection Gap in Uganda’s Green and Agricultural Economy

Powering Africa’s Future with Clean Cooking

August 1, 2025
Uganda’s Energy Transition Plan leaves women behind

Op-Ed: How climate change amplifies inequality for women

August 1, 2025
Environmental Experts Push for LPG Financing to Save Forests and Protect Public Health

Why Liquefied Petroleum Gas (LPG) may not address clean cooking challenges

August 1, 2025
Man Fatally Stabbed by Brother Over Coffee

Man Fatally Stabbed by Brother Over Coffee

July 31, 2025
Kibaale Man Killed Over Family Radio Set Sale

Kibaale Man Killed Over Family Radio Set Sale

July 31, 2025
FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

FDC Cancels National Delegates Conference

July 30, 2025
FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

July 30, 2025
FDC Endorses Nandala Mafabi for Presidency

FDC Endorses Nandala Mafabi for Presidency

July 30, 2025
Vivo Energy Uganda and Uganda National Oil Company partner to develop LPG storage hub in Kabalega Industrial Park Kampala, Uganda.

Vivo Energy Uganda and Uganda National Oil Company partner to develop LPG storage hub in Kabalega Industrial Park Kampala, Uganda.

July 30, 2025
  • About Us
  • Internship
  • Contact Us
Saturday, August 2, 2025
Parrots Media
No Result
View All Result
  • Login
  • News
    Dr. Ayo Appointed New World Bank Country Director for Uganda

    Dr. Ayo Appointed New World Bank Country Director for Uganda

    Bridging the Protection Gap in Uganda’s Green and Agricultural Economy

    Powering Africa’s Future with Clean Cooking

    Uganda’s Energy Transition Plan leaves women behind

    Op-Ed: How climate change amplifies inequality for women

    FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

    FDC Cancels National Delegates Conference

    FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

    FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

    Vivo Energy Uganda and Uganda National Oil Company partner to develop LPG storage hub in Kabalega Industrial Park Kampala, Uganda.

    Vivo Energy Uganda and Uganda National Oil Company partner to develop LPG storage hub in Kabalega Industrial Park Kampala, Uganda.

    Trending Tags

  • Climate Change
  • Business
  • Science and Technology
  • Sports and Entertainment
  • Business
  • Others
    • Education
    • Lifestyle
    • Religion
    • Opinions
  • News
    Dr. Ayo Appointed New World Bank Country Director for Uganda

    Dr. Ayo Appointed New World Bank Country Director for Uganda

    Bridging the Protection Gap in Uganda’s Green and Agricultural Economy

    Powering Africa’s Future with Clean Cooking

    Uganda’s Energy Transition Plan leaves women behind

    Op-Ed: How climate change amplifies inequality for women

    FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

    FDC Cancels National Delegates Conference

    FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

    FDC’s Nandala Mafabi to Run Unopposed After Amuriat’s Withdrawal

    Vivo Energy Uganda and Uganda National Oil Company partner to develop LPG storage hub in Kabalega Industrial Park Kampala, Uganda.

    Vivo Energy Uganda and Uganda National Oil Company partner to develop LPG storage hub in Kabalega Industrial Park Kampala, Uganda.

    Trending Tags

  • Climate Change
  • Business
  • Science and Technology
  • Sports and Entertainment
  • Business
  • Others
    • Education
    • Lifestyle
    • Religion
    • Opinions
No Result
View All Result
Parrots Media
No Result
View All Result
Home RELIGION

Foreign Capital and Taxation as a matter of National Interest

Columnist by Columnist
November 20, 2021
in RELIGION
0
0
SHARES
0
VIEWS
Share on FacebookShare on X

PARROTS UG | ECONOMIC REPORT:

There is a general presumption and saying that capital has no home but within realistic parameters the home of capital is its place of origin because it always goes back with its profits or returns on investments.

READ ALSO

Victoria University Backs Pastor Bugembe’s 20-Year Gospel Music Milestone

Police Urge Vigilance Amid Ongoing Terror Threats

Capital holds much more value in countries like Uganda where fixed deposits have monthly interest returns of up to 15% and 25 – 30% if invested in loans through commercial Banks as compared to developed countries where interest on loans is as low as 5%, 1% or even 0.5%.

In some countries deposits actually accumulate a charge instead of earning interest. Once foreign capital is brought in Uganda, it’s a requirement as provided under section 117 of the Financial Institution Act that a Financial Institution should acquire authorization from Bank of Uganda for regularization of such Financial Institution business meaning equally such Financial Institution Business attracts income Tax liabilities that should be paid to the Ugandan government for collective National development.

Foreign loans are very healthy for the economy as they attract capital, however, they should be done within parameters of the law where both the banks and Uganda as a nation benefit with government taxes paid instead of the current unlawful transactions in commercial banks where both the principle capital and profits are all fully repatriated without any taxes paid leaving the economy in absolute poverty.

Majority of commercial Banks in Uganda operate with foregin Capital, make huge profits as a result of high interest rate charged on loans, repatriate all the profits and all the principle back to its place of origin with zero Taxes paid.

Unregulated foreign capital is more of a liability than an asset to the economy. As a result, Ugandan local businesses are heavily taxed with many collapsing simply because the existing Tax burden in the country is not evenly distributed as the huge economic players like Commercial Banks are paying less or nothing at all.

Every independent sovereign state protects its financial boundaries within parameters of both local and international laws to facilitate national growth.

However untaxed, uncontrolled and unregulated foreign capital, Case in point Uganda, sweeps the economy dry leaving the country in a constant state of absolute poverty.

Majority of Ugandans are not poor because they are weak, they lack capital to start anything reasonable in line with their individual progress or to invest towards national development. All capital is being repatriated out of the country by foreign commercial banks in the disguise of unregulated foreign exploitative oneway capital.

ADVERTISEMENT

Uganda holds a population of 46M people with a limited narrow tax base of 2M registered taxpayers. The growth in population doesn’t reflect growth in our tax base because of lack of capital to start developmental projects that require huge capital investment.

Growth in population calls for growth in the national budget every year, however, with such a narrow tax base and given dynamics at hand, how then can the government provide the required collective services like more roads, hospitals, educational services etc. to meet the population growth. That’s why URA keeps on revising tax rates upwards for the already existing few taxpayers to meet the budget which has seen so many small businesses collapse yet the solution would be in widening the tax base through making more Ugandans productive. This has equally proved hard due to limited capital as a result of unregulated profit repatriation through banks and foreign investors.

Secondly that’s why the Government keeps borrowing and looking up to donations to support our national budget every year.

Tasha 10 photography Mbarara

Government equally heavily borrows from commercial banks as well yet it’s the same funds that have exploitatively been taken off Ugandans through high interest rates on unregulated foreign capital. Commercial banks heavily invest huge in government treasury bills and bonds for effective national exploitation with reduced risk as compared to lending to individual Ugandans.

As an effect of unregulated foreign capital, this has led to an increase in government borrowing, that’s why our national debt grows at a higher rate than national development. If this is not addressed as a matter of national interest in time, at a given future point in time the country shall stand too deeply indebted to save.

Foreign capital has to be controlled, regulated and taxed within parameters of both local and international laws for national collective development as a matter of national interest.

Regulation 13

Commercial Banks smuggled regulation 13 of the Mortgage Act into law which requires a person with a financial dispute with any Bank to first deposit 30% of any disputed amounts with such Bank before one can be heard by courts of law.

Which regulation stands repugnant and inconsistence with Article 21 of the constitution that provides for equality before the law and freedom from discrimination and Article 28 that provides for the right of fair hearing before courts of law. Why should Ugandans be subjected to payment before they can be heard by courts of law as if justice is for sale to Ugandans when it comes to commercial Banks.

This condition has seen many Ugandans unlawfully lose their property.

Tags: Foreign CapitalNational InterestTax burden in Uganda

Related Posts

Victoria University Backs Pastor Bugembe’s 20-Year Gospel Music Milestone
News

Victoria University Backs Pastor Bugembe’s 20-Year Gospel Music Milestone

July 16, 2025
Police Urge Vigilance Amid Ongoing Terror Threats
Religion

Police Urge Vigilance Amid Ongoing Terror Threats

June 6, 2025
Journalists blocked from Martyrs Day Venue
RELIGION

Journalists blocked from Martyrs Day Venue

June 3, 2025
News

Malawian, Tanzanian Students Jet In for Uganda Martyrs Essay Awards

June 2, 2025
Religion

UPC Urges Reflection and Reform Ahead of Uganda Martyrs Day

May 28, 2025
News

Kasujja Warns Against Secularism as UMU Trains Chaplains to Tackle Youth Crisis

May 26, 2025
Next Post
Soroti leaders embark on schools-renovation

Soroti leaders embark on schools-renovation

POPULAR NEWS

Catholic Priest Speaks Out Against Museveni and Son’s Leadership

Catholic Priest Speaks Out Against Museveni and Son’s Leadership

February 16, 2025

“Life Is Scum”: Kabale University Student Leaves Suicide Note, Takes Own Life

July 25, 2025

Former IGP Okoth Ogola Dies

February 14, 2025

A Love Beyond Distance: A review of Leonard Kamugisha Akida’s poetic tribute on valentine’s day

February 14, 2025

Besigye Sends Easter Message from Luzira Prison as Archbishop Kazimba Urges for Release of Political Prisoners

April 18, 2025

EDITOR'S PICK

Sultana Salim Named NUP flag bearer for Kisoro district Woman MP By-Election

Sultana Salim Named NUP flag bearer for Kisoro district Woman MP By-Election

October 29, 2024
Celebrating tenacity of women: From village woman to district chairperson

Celebrating tenacity of women: From village woman to district chairperson

March 8, 2024
L.Pool – Everton match may be played at neutral ground.

L.Pool – Everton match may be played at neutral ground.

June 10, 2020

Updf retires 14 Generals and 604 senior and junior officers from the force.

August 5, 2021
VINAStech advert VINAStech advert VINAStech advert
ADVERTISEMENT

About

Parrots Media

A Public Relations and Media Services Company registered and licensed to operate in Uganda and the Great Lakes Region.

Follow us

Categories

  • Business
  • BUSINESS REPORTS
  • CLIMATE ACTION REPORTS
  • Climate Change
  • COMMUNITY REPORTS
  • Education
  • Entertainment
  • FEATURES
  • Health
  • Lifestyle
  • News
  • News
  • OBITUARY
  • Obituary
  • Opinions
  • Religion
  • RELIGION
  • Science and Technology
  • Sports
  • Sports and Entertainment
  • TOURISM

Recent Updates

  • 1,300 Candidates Battle for Just 31 Jobs at OAG
  • Seku applauds boda boda leaders for championing Patriotism
  • Dr. Ayo Appointed New World Bank Country Director for Uganda
  • Powering Africa’s Future with Clean Cooking
August 2025
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
  • About Us
  • Internship
  • Contact Us

© 2025 Parrots Media | Website Designed and Maintained by VINAStech

No Result
View All Result
  • Parrots Media
  • News
  • Business
  • Science and Technology
  • Sports and Entertainment
  • Lifestyle
  • Others
    • Climate Change
    • Education
    • Religion
    • Opinions

© 2025 Parrots Media | Website Designed and Maintained by VINAStech

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

You cannot copy content of this page