2012 Budget breakdown

2012/13 Budget. Govt introduces new taxes as it seeks to spur growth.



WINNERS

EDUCATION

Education continues to take the biggest chunk of the budget. Ms Kiwanuka allocated Shs1,669 billion to the sector (or 17 per cent of total budget). This is an increase from the Shs1,418b allocated in the last financial year. Primary school teachers can expect a pay rise.

INFRASTRUCTURE

The works and transport sector also got an increment in allocation. The sector will spend Shs1,651 billion up from last year’s Shs1,291 billion.

YOUTH EMPLOYMENT
An additional Shs3.25 billion has been provided to boost the Youth Venture Capital Fund for which Shs25 billion is currently being lent out to youth. The minister said Shs8b has been lent out so far.

PAYE
Government has increased the Pay As You Earn threshold from Shs130,000 to Shs235,000 per month. That means people with earning of Shs230,000 and below are exempted from this tax.

DIGITAL TECH
To facilitate smooth transition from analogue to digital terrestrial transmission by use of Set Top Boxes, import duty on Set Top Boxes was reduced from 25 percent to 0 percent for a period of one year.

GAMING AND BETTING

Whereas the minister announced that she was reinstating the VAT exemption on gambling, she increased the Gaming and Pool Betting Tax from 15 per cent to 20 per cent. This measure, she says, will generate Shs.4.3 billion.

SPIRITS/COSMETICS
The excise duty on spirits from locally-made raw materials has been raised from 45 per cent to 60 per cent. Minister also announced the introduction of a 10 per cent tax on cosmetics and perfumes.

WATER
The cost of piped water is expected to rise after the minister announced the reintroduction of VAT at 18 per cent. The measure, Ms Kiwanuka says, will generate Shs21.7 billion.