By Richard Onapatum
Consumers brace themselves for yet another blow to their wallets as the Ugandan government announces plans to increase taxes on petroleum products. The proposal, which includes raising taxes on petrol, diesel, and kerosene, has been met with widespread disapproval from the public.
According to the latest announcement, the tax on petrol is set to jump from Shs.1450 to Shs.1550 per litre, diesel from Shs.1130 to Shs.1230 per litre, and kerosene from Shs.200 to Shs.500 per litre. This significant increase is expected to result in a surge in overall fuel prices across the country, further burdening consumers already grappling with economic challenges.
In addition to the fuel tax hike, the government has put forward a proposal to introduce a 5% withholding tax on proceeds from land sales within urban areas, rental property sales, and transactions involving private company shares. Taxpayers will be required to remit the tax to the Uganda Revenue Authority (URA) within 15 days of the sale, with penalties awaiting those who fail to comply.
However, amidst the wave of tax increases, there are also measures aimed at promoting certain sectors. The Ministry of Finance has suggested exemptions for the supply and manufacture of electric cars made in Uganda, as well as the assembly of electric vehicle charging equipment. These exemptions are seen as efforts to encourage the adoption of eco-friendly transportation alternatives.
Furthermore, the proposed tax plan includes exemptions on essential products such as ethanol cooking stoves, hoes, fertilisers, and others. These exemptions are aimed at supporting agricultural and household sectors, providing relief to farmers and consumers alike.
As debates on the tax proposal intensify, consumers and businesses alike are closely monitoring the situation, with many expressing concerns over the potential impact on their daily lives and operations. With fuel prices poised to climb once again, the road ahead appears fraught with economic challenges for Ugandans across various sectors.