KAARO KARUNGI | NEWS – Internet users, beer consumers and motorists should brace for tougher times after Parliament yesterday endorsed a raft of government’s proposed taxes in desperate attempts to raise revenue to resuscitate the economy that is suffering from the effects of Covid-19 pandemic.
Under the Excise Duty Amendment Bill, 2021, that was endorsed by Parliament, Internet users will have to dig deep into their pockets to pay a 12 per cent levy on Internet bundles, even after the tax proposal was rejected by human rights’ defenders and the Opposition.
The critics of the tax argued that it would curtail freedom of information on the Internet. The law replaces the widely-criticised Over-The –Top (OTT) tax for social media access.
Motorists will pay a Shs100 tax increase per litre of petrol and diesel. Parliament, however, rejected a Shs100 tax proposal on wheat.
Government argues that the fuel tax would compensate for the earlier proposed annual road licence fee; Shs200, 000 per motor vehicle and Shs50, 000 per motorcycle, that has since been dropped.
The fuel tax is expected to fetch an additional Shs196 billion.
All the new taxes take effect on July 1.
The fuel increment will raise the tax on petrol to Shs1, 450 per litre and Shs1, 130 per litre of diesel.
A litre of fuel is expected to rise to Shs4,160.
During a heated debate yesterday, the tax was endorsed after resistance from a section of legislators, who argued that it will push the fuel prices up, the cost of production and a general increase in the cost of living.
“This is going to add to the burden on the economy amid efforts to recover from the Covid-19 impact. The fuel dealers are going to add this to the consumers… the food price is going to soar.
This is not the right time, you would bring it at a time when the economy is vibrant,” Mr Theodore Ssekikubo, the Lwemiyaga County MP, said.
He added: “This is the opposite of the stimulus package. You are giving with one hand and taking away with another.”
Minister for Planning David Bahati, however, defended that the tax on fuel, saying it will not translate into a significant increase on pump prices.
