Ugandan govt urged to consult widely on new taxes to avoid public dissent

Some taxes are not only fair but also discriminatory, wondering why and how, for example, the government and parliament came up with taxes on sanitary towels and diapers

Kampala, Uganda | THE INDEPENDENT | The government of Uganda is urged to consider public consultations prior to passing tax bills, so as to avoid possible public dissent.

First Deputy Prime Minister and Minister for East African Community Affairs, Rebecca Kadaga, Tororo District Woman MP Sarah Opendi and SEATINI Uganda hinted that the taxpayers in Uganda are resentful to taxes because they are not consulted or adequately educated.

Giving an example of the recent protests by traders in Kampala, the leaders said these are the same reasons, although the reactions are different, with what has sparked off the current developments in neighbouring Kenya.

Kadaga said some taxes are not only fair but also discriminatory, wondering why and how, for example, the government and parliament came up with taxes on sanitary towels and diapers.

She was speaking at the East African Community Post-Budget Dialogue of Tax and Debt organised by the ministries of EAC Affairs and of Finance, Planning and Economic as well as SEATINI Uganda and Uganda Revenue Authority.

Kadaga also admitted that despite dialogues and agreements with neighbouring countries, the issue of Non-Tariff Barriers remains a major hindrances to trade within the community.

She, however, expressed hope that that the forthcoming retreat of the EAC Council of Ministers in the state of EAC integration will resolve new and outstanding issues, including Kenya’s rejection of Uganda’s milk products. She also hoped that the skirmishes in Kenya will not get out of hand as much as to disrupt the transport corridor.

Over the weekend, the Sunday Monitor quoted a top milk exporter saying that Kenya had since last year made exports difficult by either rejecting, suspending or delaying export permits since last year.

Kenya descended into street protests after the national budget was presented last week, protesting proposed tax measures on bread, cooking oil and motor vehicles among others.

MP Opendi said tax, which is described as a compulsory contribution to government, is supposed to be put to good use and that any perceived misuse or theft can lead to public discontent.

Opendi also criticized fellow legislators who were quoted at a public function in Lwengo as saying that if a person steals public money and shares with his or her constituents, such a person should not be punished.

These statements attributed to Speaker of Parliament Anita Among, MP Juliet Kinyamatama and Minister Haruna Kasolo, were reportedly voiced in support of area MP Cissy Namujju and her other colleagues who are facing charges related to corruption.

In his remarks on behalf of SEATINI Uganda Executive Director, the Programs and Communications Manager, Herbert Kafeero cautioned the EAC countries against accumulating huge debts which, he said sucks most of the resources into debt servicing at the expense of public services.

He also called for more details and comprehensive public consultations on new tax measures, saying that two weeks granted for consultation cannot be enough to have all the stakeholders on board, and may lead to uprisings.

He called on the East African Community partner-states to focus more on unity than disintegration that only hurts the citizens. He said, for instance that the lack of harmonization of tax and other policy as well as the failure to operationalized enforceable dispute resolution mechanisms were responsible for the current cross-border challenges and should be resolved immediately.

Giving the example of the Democratic Republic of Congo, Kafeero also suggested that some countries some countries were not seeing benefits in the integration and were therefore not committed to it, despite officially the EAC having eight members.

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