Investors Back Budget
Jun 16, 2003
MEMBERS of Parliament and investors welcomed the budget but regretted the increase on taxes on fuel.
By Okello Jabweli
and Steven Odeu
MEMBERS of Parliament and investors welcomed the budget but regretted the increase on taxes on fuel.
They said the tax would undermine its objective of tackling poverty.
Thomas Bragaw, the chief executive Mobile Telecommunication Network (MTN) said it was not appropriate to raise excise duty on air time especially for a country that is trying to develop the telecommunications sector.
“It’s even a bad signal that we were not consulted on this issue. If you put it together with excise duty. It is actually 27%.â€
Abid Alam, chairman Uganda Manufacturers Association (UMA) said it was a good budget that is development oriented.
He said the Government has now shifted from short-term budget to one that is based on promoting investments.
“The reduction of excise duty on soft drinks and agricultural imports is probably the best thing that has happened to this country today.
“Fuel will definitely affect everything in the economy but I am sure the budget offers more positive side that will take away the negative impact,†he said.
James Mulwana, chairman Private Sector Foundation (PSF) said the budget would make Uganda more competitive in the region.
“Agriculture is where we have a comparative advantage in the region. The removal of taxes in this sector will make us more competitive,†said Mulwana.
MPs Nsubuga Nsambu (Makindye West), Dr. Okullo Epak (Oyam South) and Dorothy Hyuha (Tororo Women) said the increases on fuel and airtime will lead to increase in prices of all goods and services.
“Once you touch petrol you spoil the whole thing. The price of fuel affects the price of every commodity and it’s the poor who are going to bear the brunt,†Nsambu said.
Hyuha and Epak said, “The increase on fuel and airtime is going to lead to increases on prices of everything that will have to be transported,†she said.
Hyuha, however, expressed happiness at the promised increase in funding for district hospitals.
The marketing manager of Nile Breweries Mike Olsen said “ a 20% excise duty on a product that focussed on eradicating poverty is a bit disappointing.â€
Dr. Epak said he was happy that donor dependence was reducing. Finance minister Gerald Ssendaula announced that donor support for the fiscal year 2003/4 is projected at 48%— down from more that 50% in the current fiscal year.
A minister speaking on condition of anonymity regretted the increase in fuel but said it was the only alternative for increasing revenue.
Ends
and Steven Odeu
MEMBERS of Parliament and investors welcomed the budget but regretted the increase on taxes on fuel.
They said the tax would undermine its objective of tackling poverty.
Thomas Bragaw, the chief executive Mobile Telecommunication Network (MTN) said it was not appropriate to raise excise duty on air time especially for a country that is trying to develop the telecommunications sector.
“It’s even a bad signal that we were not consulted on this issue. If you put it together with excise duty. It is actually 27%.â€
Abid Alam, chairman Uganda Manufacturers Association (UMA) said it was a good budget that is development oriented.
He said the Government has now shifted from short-term budget to one that is based on promoting investments.
“The reduction of excise duty on soft drinks and agricultural imports is probably the best thing that has happened to this country today.
“Fuel will definitely affect everything in the economy but I am sure the budget offers more positive side that will take away the negative impact,†he said.
James Mulwana, chairman Private Sector Foundation (PSF) said the budget would make Uganda more competitive in the region.
“Agriculture is where we have a comparative advantage in the region. The removal of taxes in this sector will make us more competitive,†said Mulwana.
MPs Nsubuga Nsambu (Makindye West), Dr. Okullo Epak (Oyam South) and Dorothy Hyuha (Tororo Women) said the increases on fuel and airtime will lead to increase in prices of all goods and services.
“Once you touch petrol you spoil the whole thing. The price of fuel affects the price of every commodity and it’s the poor who are going to bear the brunt,†Nsambu said.
Hyuha and Epak said, “The increase on fuel and airtime is going to lead to increases on prices of everything that will have to be transported,†she said.
Hyuha, however, expressed happiness at the promised increase in funding for district hospitals.
The marketing manager of Nile Breweries Mike Olsen said “ a 20% excise duty on a product that focussed on eradicating poverty is a bit disappointing.â€
Dr. Epak said he was happy that donor dependence was reducing. Finance minister Gerald Ssendaula announced that donor support for the fiscal year 2003/4 is projected at 48%— down from more that 50% in the current fiscal year.
A minister speaking on condition of anonymity regretted the increase in fuel but said it was the only alternative for increasing revenue.
Ends