Government Urged to Reduce Taxes

visit geneva;”>Reading the National Budget 2013/2014 on Thursday last week, clinic Minister of Finance, discount Planning and Economic Development, Maria Kiwanuka said, there will be an increase of certain essential commodities.

The minister believes these new taxes will raise revenues for government, a move that could see Ugandans tighten their belts.

“The Government is determined to raise revenues, enhance transparency in collection and enforcement, improve compliance and encourage investment,” she said while addressing the congregation at Serena.

The Minister proposed to increase excise duty on petrol and diesel by 50 shillings, a move aimed at rising about Shs.72 billion. She also moved restore excise duty on kerosene at 200 shillings per litre to discourage the practice of adulterating diesel by mixing it with kerosene, saying the measure would bring in about Shs15bn.

However, increase of taxes will mainly affect the people in rural areas who mostly use kerosene.


She also proposed amendments to the tax laws to improve tax administration and enhance compliance.

Addressing the media on Monday, Professor Simeon Kayiwa of Kayiwa International University said taxes are good for every country especially in developing other sectors like roads, hospitals, among others; however, “It is unfair to the rural people.”

“The government has done wrong to increase the price of kerosene by Shs 200 per litre when it is used mostly by low income earners deep in villages. They will not be able to afford that,” added Professor Kayiwa.

He further called upon government to put an affirmative action in practice and set up government petrol stations to different areas where people access paraffin at relatively lower prices.

He gave an example of his grandmother in Gomba who is a subsistence farmer saying that it will be hard for her to buy paraffin to put in her lamp and she is likely to end up in darkness.

Professor Kayiwa has requested the Parliament of Uganda to reconsider and reduce on the allocated taxes because paraffin is essential in villages.

Other commodities like cigarettes, beers, piped water, diesel, petrol, and revenue on bodaboda cyclists has been increased by 20 percent.

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