In a bid to get the Ugandan economy moving again after nearly three months of lockdown to curb the spread of coronavirus, the government on June 11 presented a budget offering a host of tax waivers and funding for the business community.
The plan to boost economic recovery seeks to support the agriculture sector for food security and export, make credit accessible to small businesses, give tax holidays to firms and put money directly into people's pockets.
According to Finance Minister Matia Kasaija, the county's Ush45 trillion ($12 billion) budget for the 2020/2021 financial year is aimed at "stimulating the economy to safeguard livelihoods, jobs, businesses and industrial recovery in the wake of the effects of the coronavirus pandemic."
According to Mr Kasaija, the government will roll out interventions to increase agricultural production to ensure food security and expand regional food exports, a move it hopes will restore demand for agricultural produce which will in turn restore jobs and other non-farm incomes.
To further address the short-term liquidity requirements of businesses in the tourism, manufacturing, horticulture and floriculture sectors, the government will defer payment of Corporate Income Tax or presumptive tax for tax compliant corporations and SMEs with a turnover of less than Ush500 million ($133 million) per annum with no accumulation of interests and penalties.