Why was tax on tobacco not increased?

Jun 20, 2007

SIR — I am writing partly to thank the finance minister for a good budget. it was commendable. I am happy for the bold move to ban polythene bags (kaveera) and impose heavy tax on those of more than 30 microns.

SIR — I am writing partly to thank the finance minister for a good budget. it was commendable. I am happy for the bold move to ban polythene bags (kaveera) and impose heavy tax on those of more than 30 microns.

However, there is need to look at the possible alternatives to kaveera and to develop them in a sustainable manner. Some of these could be in local crafts and paper bags. The challenge with paper bags lies in the raw materials to produce them which unfortunately are trees! We need support from the environment, the forestry ministry and the National Forestry Authority.

We need to see to it that the trees that will make the paper bags are from well- managed planted trees and not from natural forests. Industries that will make paper need to invest in tree planting instead of relying on imported pulp. Can we have the ministries concerned do the needful?
I am surprised that this year’s budget did not increase tax on tobacco products.

I am so disappointed that tobacco, which is a silent killer and which in the next 17 years will kill more people than any single disease in the world is still enjoying light tax. Cigarettes are very cheap and even children can buy them in abundance!

Why doesn’t the government listen to the calls of medical practitioners and those who love to see a healthy population and tax cigarettes heavily and reduce the proportion of those who smoke while increasing the tax base? Why should such a cancer, devouring innocent people like passive smokers not be heavily taxed?

In fact this would be killing two birds with one stone because the expensive treatment of smoking-related diseases would considerably reduce! Why should smokers who are responsible for spreading diseases not pay heavily for their lifestyle?

I think this should be a point of concern in next year’s budget instead of overtaxing poor gainfully employed civil servants who are already overtaxed anyway. The return of the graduated tax in a different garb is an unclear move to me. How will this tax be collected? Who will decide the percentage and how?

If it is left purely to local governments, then we are going to be exploited. Remember it is the same people paying ‘pay as you earn’ fuel tax, VAT, and now this new income tax! People are getting overwhelmed and our take-home is getting meagrer and meagrer yet the cost of living is shooting up every month.

Simeon Sebina Kibira
Kampala


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