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.
Prudence Nyamishana 0758670016 prudence.nyamishana@fowode.org
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