Finance State Minister Henry Musasizi announced a notable increase in formal employment, with over 200,000 new employees added to the Pay As You Earn (PAYE) register. Speaking before Parliament’s Committee on Finance on January 5, Musasizi revealed that the PAYE register witnessed a substantial expansion of 14.1%, rising from 1,422,857 employees in the financial year 2021/22 to 1,624,072 in the financial year 2022/23.
The recovery of formal employment is particularly noteworthy, considering the challenges posed by recent economic shocks. Musasizi’s statement came during the discussion of the Budget Framework Papers for the Ministry (Vote 008) and Treasury Operations (Vote 130) for the upcoming financial year 2024/25.
Pay As You Earn (PAYE) is a tax imposed on the total monthly income, including salary and other payments, exceeding sh235,000. Employers are responsible for remitting this tax to the Uganda Revenue Authority (URA) on behalf of their employees. The rates are determined based on the individual’s resident status, as specified by URA.
During the committee session, Finance State Minister for Planning Amos Lugoloobi highlighted that the delayed acquisition of the right of way contributes to the non-performance of loans. He called on Parliament to engage in a comprehensive discussion about the country’s development challenges and proposed solutions, emphasizing the importance of embracing the 3rd National Development Plan (NDPIII) program approach.
The NDPIII, spanning from 2020/21 to 2024/25, serves as the government’s guiding document, aiming to fulfill the aspirations outlined in Uganda Vision 2040. This visionary initiative seeks to transform Ugandan society from a predominantly agrarian economy to a modern and prosperous nation within a 30-year timeframe.
Ramadhan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Finance Ministry, was also present at the parliamentary meeting.
