Thursday, 21 January 2016

SMALL BUSINESSES TASKED TO KEEP BOOKS OF ACCOUNTS

SMALL BUSINESSES TASKED TO KEEP BOOKS OF ACCOUNTS


Government has now made it mandatory for businesses whose trading licences cost more than three currency points (Shs60, 000 and above) to keep books of accounts.

According to ministry of Trade statistics, majority of businesses paying for such licences operate informally and without records.
Announcing the development contained in the Trade Licensing Amendment Act, 2015, at the ministry offices last week, Trade minister Amelia Kyambadde said the changes are meant to streamline trade in goods and services.

She said: “Government has amended the Trade Licensing Act cap 101 following the assent by the President to the Trade Licensing Amendment Act 2015.”

She continued: “The Amendment Act provides for a number of changes in the trade licensing of business that Kampala Capital City Authority, local and urban authorities, business community and other stakeholders need to take note of and ensure compliance.”

The changes, she said, provide for mandatory keeping of books of accounts by businesses that pay a licence of more than three currency points. One currency point is an equivalent of Shs20,000.
When contacted on Tuesday, Kampala City Traders Association chairman Everest Kayondo applauded the amendments, saying most of them were as a result of their demand and prudence.

He said: “Book keeping and other amendments in that law were our proposals. We have argued for bookkeeping because it helps the owner of the enterprise understand whether he/she is making profit or recording losses.”

The amended law, according to Ms Kyambadde, also provides for increase in the number of grades in a city, municipality and towns from the current 2 to 4 grades. This is important for purposes of determining trade licencing fees.

Unlike before where traders would pay for licences irrespective of its grade— size of business, the new law requires that each enterprise is licenced according to its size.
It also provides for trade in services. Previously the law only considered licencing trade in goods, leaving out trade in services, depriving authorities the much needed revenue from such entities minting money in the service industry.

Changing the duration of the licence to 12 months from date of issue rather than expiry on every December 31 is the other addition in this law, which Mr Kayondo said was one of the contentious provisions of the previous law.

Licensing act
The Trade Licensing Amendment Act, 2015 does not only wipe away multiple payments but also widens revenue sources for authorities. This is evident with licencing of trade in services as opposed to only trade in goods as it was the case since 1960.

iladu@ug.nationmedia.com

http://www.monitor.co.ug/Business/Markets/Small-businesses-tasked-to-keep-books-of-accounts/-/688606/3016944/-/skx93oz/-/index.html

Monday, 18 January 2016

Why you may need to put a caveat over your land

WHO CAN LODGE A CAVEAT?
Andrew Tusigwire, a High Court commissioner working with Bashasha & Co Advocates, says a caveat can be lodged by any person with an equitable interest in the land.
It can be done by a land seller who has received an installment for the purchase of the land but is no longer the registered owner, a purchaser who has paid part of the money for buying the land but is not the registered owner, a person with a right of access to the land, for instance, a son, daughter or widow of the deceased immediately after death or by a tenant on leased land. In some cases, it may be done by a lender under an equitable mortgage or a person who has a benefit of a court order concerning the land.
HOW TO PUT A CAVEAT ON PROPERTY
Obbo warns that the caveator must provide details for his claims with the accurate description of the piece of land to be caveated with sketches attached.
A copy of evidence to support your claim will be requested by the lawyer who will interview you to establish your position (interest) on the land.
“It takes one to have original documents of the title that have been witnessed by the lands registrar, a statutory declaration by the commissioner of oaths (affidavit) to back your claim for the title, a dated caveat application, passport photos and general receipts of payment,” says Obbo.
These documents are presented to the Registrar of titles at the headquarters on Parliamentary Avenue, at Kampala Capital City Authority (KCCA) offices as well as other regional offices in Wakiso, Mbarara, Jinja, Mukono and Masaka depending on where the piece of land you want to caveat is located.
Acknowledgement of a lodged caveat, according to Obbo, takes 10 working days.
“Although in rare cases, a caveat may be rejected, especially if the caveator is an impersonator or if he has no particular reason for lodging the caveat, says Tusingwire.
“If a person lodges the caveat wrongly, the caveatee can claim for the pecuniary losses incurred and the caveator must compensate him unless they agree to settle the matter outside court,” he says.
COSTS AND IMPLICATIONS
You will pay Shs10,000 for stamp duty, registration fees of Shs15,000 and if the caveat affects more than one title, you will have to pay Shs5,000 for every extra title.
Registered proprietors who mortgaged property should review their mortgage terms before lodging a caveat as the terms and conditions of the mortgage may prevent the process of lodging any caveat without the consent of the mortgagee.
Implications
It is very important to get legal advice while dealing with a caveat or understanding the implications of lodging one. Whoever deals with caveated land does it at his or her own risk unless you seek consent from the caveator.
“When a person lodges a caveat on a given piece of land, other people are assumed to deal with it at their own risk and will stop the registration of any documents that would need to be signed by the caveator,”says Tusingwire.
One should also know that one can apply for removal or claim for compensation where a person has improperly lodged a caveat and caused loss.
“A caveat prevents registration of any further dealings with the land that affects the caveated interest, unless if the caveator consents or the caveat lapses, is cancelled, rejected by the titles registrar or is withdrawn by the caveator.
If a caveator lodges a caveat, it is very hard to sell the land to another person,” adds Tusingwire.
The proprietor has the option of applying to the Supreme Court for removal of the caveat if it was placed without a reasonable cause.
CAN A CAVEAT BE WITHDRAWN?

A caveat may be removed by a court order; a caveatee may request the caveator to remove it or the caveator may remove it by himself because the interest claimed under the caveat was satisfied.
“A caveat lodged by a beneficiary of the estate of the deceased person does not lapse. It cannot be terminated by anyone except the caveator or by court order. However, the caveat can be removed by the caveator any time he or she feels like, especially when they feel satisfied by the lodgement. If someone lodges a caveat, it usually lapses within 60 days or may agree with the caveatee to cancel the caveat,” says Tusingwire.
If the caveator is not satisfied and the caveat is about to expire, he or she can prevent lapsing by lodging an order of the Supreme Court to extend the caveat date expiry. This will require you to be summoned before court.

Monday, 4 January 2016

Here’s how we can pay teachers more but should we? Well, it’s complicated



Here’s how we can pay teachers more but should we? Well, it’s complicated
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By Daniel K. Kalinaki

Posted  Thursday, November 19   2015 at  02:00

In Summary

The question, therefore, isn’t whether we can afford to pay teachers better; it is whether it is right to do so and the opportunity cost of such a policy move. As any economist will tell you, just because you can afford something doesn’t mean you should pay for it. And here, as we shall see next week, things get rather complicated.
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FDC candidate Kizza Besigye’s campaign proposal to pay primary school teachers Shs650,000 per month and their secondary counterparts Shs1 million if elected president has generated plenty of debate about whether we can afford such an outlay.

Can we afford it? Let’s do some quick back-of-the-envelop maths. According to Uganda Bureau of Statistics, there were 171,000 primary and 54,509 secondary school teachers in 2012/13. According to data from the Ministry of Public Service, the average wage for primary school teachers in the 2015/16 Financial year is Shs400,584, which is oddly higher than that for secondary school teachers at Shs308,817 (I couldn’t find the median figure which would, I believe, cure this abnormality).

According to Education minister Jessica Alupo, the wage bill for primary school teachers was Shs822 billion in 2014, while that for secondary school teachers was Shs202 billion, a total of Shs1.22 trillion.
Assuming the increment were to be made overnight, rather than phased in over five years, Besigye’s new government would need to raise an extra Shs970 billion (Shs458b for primary, Shs512b for secondary teachers) to meet the higher wages. If you assume that the increase in the Education ministry budget already factored into the 2016/17 Financial Year, which the new government will have to work with, will all go into higher salaries, the amount of new money required falls to Shs552 billion.

There are three ways to raise this extra money. One is to push Uganda Revenue Authority to meet its projected target of collecting Shs12.6 trillion in tax revenue next financial year, which would bring in an extra Shs1.5 trillion – almost three times what is required. This would require the cutting back of tax exemptions to push our tax-to-GDP ratio to 13.7 per cent, which is still far below the Sub-Saharan average of about 17 per cent.

Assuming that URA fails to meet the target, the second option would be to cut the fat in the budget. The numbers for the 2015/16 draft estimates from the Finance Ministry are useful here. Presidential donations alone have averaged around Shs90 billion in each recent financial year. That’s already 16 per cent of the cash we need.
There is plenty more fat: State House has Shs3.9 billion for “special meals and drinks”, Shs2.8 billion for rent, Shs4.7 billion for “welfare and entertainment” and Shs51 billion for travel. Cutting each of these items by half, as well as the Shs16 billion allocated to staff, allowances and welfare of the President and Vice President’s families, would raise another Shs13.7 billion without the sky falling in – visitors can always drink sparkling wine rather than champagne.

Other rationalisation opportunities abound: Shs29b is earmarked on mobilising against poverty, while the Office of the Prime Minister has Shs12.8b for humanitarian assistance, Shs46b for “agricultural supplies”, Shs26b in “compensation to third parties”, Shs27.6b for Luweero-Rwenzori, Shs30b in “post-war recovery programmes and presidential pledges”, Shs54b in Nusaf and Shs5.8b in “strengthening and retooling” the office. Many of these programmes are duplicated in other ministries.
The OPM also has Shs8b for buying land, as does the Ministry of Agriculture, which signed off on a vast research facility recently saying it didn’t need the prime land! Add to this Shs8 billion for internal travel in the same ministry and an average of a billion shillings per ministry for workshops and seminars and you easily have at least Shs360 billion in freed-up cash.

The balance, of under Shs190 billion can then easily be raised from reallocating money to areas the new government doesn’t consider to be essential, or from raising new or increasing existing taxes.
The question, therefore, isn’t whether we can afford to pay teachers better; it is whether it is right to do so and the opportunity cost of such a policy move. As any economist will tell you, just because you can afford something doesn’t mean you should pay for it. And here, as we shall see next week, things get rather complicated.

Mr Kalinaki is a Ugandan journalist based in Nairobi. dkalinaki@ke.nationmedia.com Twitter: @Kalinaki

2016 A FORECAST – By Timothy Kalyegira


Uganda’s political class started discussing and anticipating the 2016 general election almost as soon as the 2011 elections ended.

Now that 2016 is finally here, little else will be discussed for the first two months of the year.
Many Ugandans, especially the older generation and supporters of Opposition parties such as the UPC cannot believe that Yoweri Museveni who trailed the UPC and DP during the 1980 general election and was dismissed as almost a joke that year has now been head of State for 30 years.

This bitter fact has still failed to sink in. He has now become the longest-serving president in East Africa and Africa’s fifth longest-serving leader.
So far in the 2015-2016 campaign season, the two main challengers to Museveni, Amama Mbabazi and Kizza Besigye, are engaging in conventional election campaigns.

Virtually the same The Electoral Commission is virtually the same as the one from 2011, the police publicly comes across as favouring or acting on behalf of Museveni and at the lower rural grassroots level intelligence operatives and the police are enforcing an atmosphere that more or less makes it impossible for Mbabazi, Besigye and the other presidential candidates to freely interact with the locals.
Under normal circumstances, the Opposition parties to the election should boycott it since the election may not be a fair one. But they persist in campaigning on one hand and denouncing the use of the State machinery against them.
Whether they are doing this to go through the motions as a way of accounting for the financing they have received for their campaigns or some plan to use the incidents of State sabotage as their legal evidence against Museveni when the time comes to reject the official results, remains to be seen.
The FDC camp and its supporters show the greatest motivation and believe more than any of the other campaigns that should their candidate be elected, Uganda will see a major change for the better.
The Museveni camp, by definition, is the least interested in a change of national leadership.
It prefers that things continue as they have for the last 30 years. It is the camp that has the most intense in-fighting partly because little binds its members together except the fear of change and the wish to continue enjoying the easy privileges that come with power in Africa.
However, because Mbabazi presents himself as NRM running as an independent, it has sometimes been difficult for him to garner an impassioned network of highly-motivated grassroots campaign agents.
When money or other temptations are offered them by the Museveni camp, it is easier for some of Mbabazi’s supporters to slip back into the NRM from where they came than it is for an FDC campaign agent to become an NRM supporter overnight.

That is the challenge that faces Mbabazi’s decision to continue identifying himself with the NRM.
Besigye’s enduring popularity across the country continues to be demonstrated rally after rally. The only barrier that stands between Besigye and presidential victory is the State machinery and Museveni’s determination to use it as a last resort if it must come to that.


Besigye since 2000 has not yet worked out a formula for overwhelming this State machinery as some other Opposition leaders in Africa who ran against the State machinery managed to finally do.

The Commonwealth summit in Kampala in November 2007 and the papal visit of November 2015 should have brought out Uganda’s administrative and organisational ability. There was much international prestige at stake.

That these two major international events could take place with months of preparation and yet most roads in Kampala remained dusty, with no street lights and the country could only manage a lacklustre show, demonstrates that there is little that can be done for Uganda.

We are a fourth-grade country both in leadership and the wider society and fourth-grade countries can only produce fourth-grade results, even when they try their best.

For the vast majority of the population, there will be plenty of things to preoccupy their minds other than politics or the general elections.

There will be fees, school and university. This is now the greatest burden on many families, particularly university tuition fees.

Young people will continue to be frustrated by the high youth unemployment rate of 83 per cent and for many who manage to find and hold onto jobs, they are often tedious.

The wages last only a week and a half before being eaten up by personal expenses and then one has to live on debt and hand-outs until the next pay date.

The tens of thousands of small, “moms and pops” businesses will continue finding it harder and harder to run their operations.

Where competition helps improve performance and the overall standard of products and services in countries like Germany, America, Japan and Sweden, in countries like Uganda is devastates society.

Competition and variety destroys faster than it creates in countries where the workforce has low skills and little motivation.

The businesses that produce bottled honey, candles, packed groundnuts and other basics make profit on too small a scale to accumulate capital to expand their premises or buy new machinery, thus remaining virtually hand-to-mouth operations.

Every time a new kiosk or grocery shop is opened in a Kampala, Jinja, Mbarara or Entebbe neighbourhood, it halves the volume of goods sold by the existing shop.

Other than their daily economic struggles, the majority of the Ugandan population will continue to grapple with personal battles and perplexities.

The Kampala print gossip media in its reporting shows that even among the well-to-do and famous in the city, nightmares abound, from failed marriages to infidelity, to rivals stealing their wives or husbands, to spoilt children turning into shisha or drug and alcohol addicts, to their businesses folding in a pile of debt.
Loneliness, unreturned love, boredom, inner emptiness, a lack of real purpose in life can be discerned in the many topics and messages handled by radio stations and on the large Internet social networks such as Facebook and WhatsApp.

If one or two of the aggrieved parties following the election decides to embark on a military campaign such as Museveni and Andrew Kayiira did after 1980, that could decisively change the year.
If none do, then 2016 will roll by as an ordinary year in Ugandan history.
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