PRESS STATEMENT Anti- Tadooba Tax Campaign 2014


Anti- Tadooba Tax Campaign 2014
On 12th June 2014, Hon Maria Kiwanuka the Minister of Finance, Planning and Economic Development in her Budget Speech announced FY 2014/15 Tax and Revenue measures intended to among others raise government revenue. Her speech has since been received with mixed reactions from the populace with some saying that the budget addressed some issues of concern while others argued it was another lost opportunity.
Unfortunate to note is that the Hon Minister reinstated Excise Duty of 200 shillings on Kerosene which she said would discourage unscrupulous dealers who use paraffin or kerosene to adulterate diesel, which causes damage to car engines and industrial motors. This measure is expected to generate about Shs. 15 billion and will go towards increasing solar energy in rural areas.
This new tax proposal on Kerosene has been received with an outcry of many citizens of Uganda who claim its impact will greatly be felt by even urban poor that  that depend on kerosene for cooking and lighting due to lack of electricity, the women in the markets that wake up at dawn to earn a living only to spend most of their incomes on taxes.
It is important to note that over 95% of the country’s population especially people in rural areas majority being women depend on kerosene for lighting and cooking. This tax will have far reaching consequences on many mothers who depend on paraffin to take care of the sick at home, rural Health Centers that depend on paraffin to deliver pregnant women in areas without electricity or solar energy; school children and students who depend on paraffin to study at night in schools without electricity and the poor women and men who use Paraffin to sell their produce in the markets and on the streets at night. Therefore enforcing such tax on kerosene will increase the burden on those who highly depend on it as a way of life. 
In addition, the basis of taxing kerosene is weak since taxing paraffin cannot solve adulteration of diesel. Instead the Uganda National Bureau of Standards (UBOS) should be facilitated well to execute its mandate so that the problem is solved.
 It is against this background that Forum for Women in Democracy (FOWODE) a Women’s rights organization is calling upon Ugandans to unite with us to conduct a public action against this tax proposal on kerosene dubbed, “Anti-Tadooba Tax Campaign 2014” our target is to collect 17,000 signatures from around the country who believe that the tax should not be passed in the National budget. Target signatures as reflected here are few. We shouldn’t be calling on them to join us for a public action as we don’t have one, we should ask them to join us, raise their voices to reject the tax
We also appeal to Members of Parliament to strongly reject the reinstated excise duty on kerosene also need to mention that we are appalled that taxes have started to apply even before Parliament has approved the budget. It is important that Parliament is not seen as a rubber stamp, a toothless dog but as an independent institution and should be allowed to scrutinize the budget with the mandate of Article 90 and 155 of the Constitution, Section 7(2) of the Budget Act 2001 and Rule 177 of the Rules of Procedure of Parliament in accordance with Article 90 and 155 of the Constitution, Section 7(2) of the Budget Act 2001 and Rule 177 of the Rules of Procedure of Parliament.

For more information contact: Promise Winnie- 075-8670004 promise.winnie@fowode.org
Prudence Nyamishana 0758670016 prudence.nyamishana@fowode.org

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