Scrapped tax will cause great misery

Jul 01, 2005

SIR — Graduated tax has been scrapped. To a layman this might be good news since it has eased his financial burden. However, deeper analysis reveals a different scenario.

SIR — Graduated tax has been scrapped. To a layman this might be good news since it has eased his financial burden. However, deeper analysis reveals a different scenario.

First of all, this issue first came up during the 2001 elections when Dr. Kiiza Besigye promised Ugandans that if he was voted into power, graduated tax would be history.

He was trying to win people’s hearts in the name of votes. Now presidential elections are around the corner and the sitting government has opted to do what Besigye promised in order to get votes in 2006!

In the midst of all this, Kampala City Council (KCC) has really been hit hard. Many roads in the heart of Kampala and its suburbs were tarmacked from graduated tax resources. Ring road (near Lubiri and several roads in Kisenyi are good examples.

Today, many motorists pass through Kisenyi in order to avoid the horrible Entebbe Road traffic jam. Kampala is now cleaner compared to the past where it would take KCC days to empty the ribbish bins. All this was taken care of with graduated tax. Now, what do we expect after July 1?

The city will get back to the old state. It is true other sources like donor funds supplemented the KCC activities, but how much is KCC going to lose from local revenue?

The consequences are already evident. KCC is planning to lay off 1000 workers, leading to unemployment. The government will start blaming Ssebaana Kizito and his team as non-performers.

This political behaviour is not in the best interests of Uganda.

Barbara B. Muliika
Kampala

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