Tax on capital gains will be remitted by Total Uganda on behalf of Tullow Uganda – this will be equivalent to USD14.6 million (Shs 55.6bn). The deal collapsed last September because the companies could not agree with government on taxes and recoverable costs.
Also affected is the price of sugar which is now sold at as high as 4,000 Shillings, up from 3,300 Shillings at the beginning of April, and maize brand which has increased by 400 Shillings from the initial cost of 2000 Shillings. Other essentials like cooking oil have recorded an increase by 500 Shillings.
According to the World Bank estimates, money sent to Sub-Saharan Africa – where Uganda falls – will decline by 23.1 percent to USD 37 billion in 2020, down from USD 48 billion received in 2019. Uganda received about USD 1.2 billion (4.5 trillion Shillings) in 2019, according to Bank of Uganda estimates.