The financial industry, local and international, is calling for tax incentives and a general national policy on remittances to boost their inflows and enhance their potential influence on the economy.Officially, Uganda receives 1.4 Billion Dollars or about 5 Trillion Shillings annually from Ugandans working outside the country, according to the 2023 figures.However, this figure is suspected to be far below the reality, with both the government and the industry saying much more money comes into the country through informal channels, and therefore, is not captured.according to Wilbrod Owor, the Executive Director, Uganda Bankers Association (UBA), if there is a policy in place that protects the money and the interest of the senders of the money, the figures will grow, but also the outcome of the investments from the money will be more meaningful.He was speaking at the UBA Annual Bankers Conference in Kampala under the theme: Harnessing the Potential and Maximising the Impact of Remittances on Development.Betty Amongi, the Gender, Labour and Social Development Minister, called for the need to understand why people go abroad, saying that would guide in designing products that “truly serve their needs.”This, she says, calls for research-driven, human-centred innovation if they were to better serve the millions of Ugandans working abroad and sending money home.She reminded the mainly financial services industry audience that at the heart of Uganda’s growing remittance economy lay a critical insight: that migration is driven by both necessity and opportunity.Stressing that there is more money that flows into the country than is recorded due to the informal and/or illegal, yet expensive channels, Amongi gave her own experience when she went on a secret fact-finding exercise in Dubai.Giving the view of the Bank of Uganda, Governor Michael Atingi-Ego described remittances as “so much more than mere financial transactions; they represent vital lifelines for families and communities”.On the economy generally, he said that globally, remittances often surpass foreign direct investment and official development assistance, “underscoring their profound importance in addressing employment challenges, poverty alleviation, enhancing social welfare, exposure to other skills and economic support in migrant home countries”.He called for innovation and collaboration, especially by embracing digital financial services and fostering competition in the remittance market to drive down costs and improve access.The governor says the Bank is reviewing the National Payment Systems Regulations and encouraging banks to invest in interoperable digital platforms for faster and cheaper cross-border transfers.Some of the other factors that have frustrated the diaspora communities regarding their remittances include the mishandling of their investments, especially real estat,e by either relatives, friends and even development companies which have been entrusted with the work.Julius Kakeeto, the Chairperson UBA, defended the financial sector, saying that they tend to rely on the other sectors to facilitate the establishment of businesses of properties.He says that the bankers have picked up the complaints and concerns regarding the quality of properties being sold to them by property developers and financed by UBA member institutions through mortgage finance.However, he says, going forward, they are putting in place several measures that will curtail the abuse of remittances by the different handlers.A leading money transfer company, Mastercard, called for collaboration amongst all actors in the remittances value chain so as to resolve the issues that are affecting the diaspora community in regard to their remittances.Shehryar Ali, a Senior Vice President at Masterc,ard specifically called for transparency in the business so that senders know exactly how much the recipient will receive when sent money.-URNThe post Financial Industry Calls For Tax Incentives To Boost Diaspora Remittances appeared first on Business Focus.