Scrap VAT on safe water, says Otafiire

Apr 28, 2006

THE 18% Value Added Tax (VAT) on safe water and sewerage distribution should be scrapped because it makes the utilities expensive, the water, lands and environment minister has said.

By Mariam Nalunkuuma and Apollo Mubiru
THE 18% Value Added Tax (VAT) on safe water and sewerage distribution should be scrapped because it makes the utilities expensive, the water, lands and environment minister has said.

Maj. Gen. Kahinda Otafiire (right) said this while appearing before the parliamentary committee on natural resources to present the ministry’s budget estimate for the 2006/07 financial year.

Otafiire said, “My ministry is result-oriented. You either give us money for safe water distribution or Ugandans continue dying of water-borne diseases. ”

He said, “If we do not provide water, the livestock will die during drought times. The more safe water we provide, the smaller the health budget because we will not burden our hospitals. How do they expect us to increase safe water coverage without enough funds?”

Otafiire said the Government should pay a sh10.3b debt owed to National Water and Sewerage Corporation for water consumed by government institutions.
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