Finance Minister Maria Kiwanuka
The minister of Finance Maria Kiwanuka has announced the revenue and expenditure estimates for the financial year 2012/2013, showing focus on sparking economic growth.
Focus will be on infrastructure development, supporting increased agricultural production and increased support for the private sector, among others.
The education sector is set to receive the biggest chunk of the budget at Shs 1, 669 billion, which is about 17% of the total budget. This implies an increase from Shs 1, 418 billion this financial year and also provides for salary increment for teachers.
The works and transport sector will also receive a big chunk at Shs 1, 651 billion up from Shs 1, 291billion.
The minister however announced a reintroduction of 18%VAT on piped water, which is bound to increase the costs.
The PAYE threshold was also increased from Sh 130,000 to Shs 235,000 per month. This means that those that earn more money will pay more while those that earn less than Shs 235,000 will be exempted from paying the tax.
Taxes on cosmetics were increased by 10%while those on spirits made from local materials were increased from 45% to 60%. Gaming and pooling tax was also increased from 15% to 20%.
