Water consumers request government to wave off the 18% VAT

By Donald Kiirya 

Residents of Jinja who use piped water have requested government to reconsider waving off the 18% VAT on water introduced during the 2012/2013 financial budget. 

The request was made during a closing ceremony of the water week organized by National Water and Sewerage Corporation (NWSC) at their Jinja branch headquarters on Friday. 

 “Water is life to people of Uganda but the 18% VAT is high and for this case, it will be impossible for Ugandans to access water in their homes. People will resort to stealing it, so I appeal to government to remove the 18% VAT on the water tariff in order for the local people to access it,” said Alfred Wawundo, a pastor at Nile Baptist Church in Jinja. 

He also appealed to legislators in Parliament to consider the removal of VAT from water. 

The Jinja district L.C V chairperson, Fred Gume Ngobi, said government should try as much as possible to make the costs of water affordable to consumers.

“If the rates are high government will be discouraging people from using water which is harmful to their health. So I appeal that there should be a way of protecting consumers by supplementing and subsidizing,” said Gume.

He said NWSC is one of the priority areas so even if  its operating at negative profits, it must continue operating because it has to cater for its people.

Silver Emudong, the General Manger of NWSC Jinja area said “This time the water bill will look expensive because we will add the 18% VAT, NWSC takes 100% and government takes its 18%.” 

He said the VAT was introduced during the National budget speech in Parliament. 

“We appeal to Uganda Revenue Authority to charge NWSC on the amount only collected not as per the billing because right now as per the law, whatever we are billing, we have to pay yet government does not pay its bills, so we pay VAT on behalf of government to URA and yet it takes long to pay and it is one of the issues we are facing at NWSC,” said Emudong. 

Emudong also revealed to stakeholders during the tour of the water plant that NWSC Jinja area introduced a new water purification and treatment system where salt is used in the process instead of the chlorine chemical which was hazardous to employees working at the plant.