In case You Missed : Cutting or Removing taxes is Suicidal

President Museveni addresses Nation on Skyrocketing commodity prices


What President Yoweri kaguta Museveni said about rising commodity prices, tax cuts, fuel in Uganda.


Museveni rules out tax cuts, subsidies to counter inflation as he says Ugandans should learn to be frugal because tax cuts is definite suicide and government can't lose revenue of Shs 1.53tn from petrol, Shs 1.15tn from diesel, Shs 520bn for wheat, Shs 193bn of sugar.


”With the internally produced commodities, I was tempted to look at removing taxes. However, the tax loss would cripple our budget and the planned developments,” said Museveni during presidential address on rising commodity prices.



The president also added; “It is the continued development of the economy that will get us to the stability of a more integrated economy.”


H.E Museveni described subsidies and removing taxes from imported goods as definite suicide which would deplete both family savings and national reserves, leading to the inability to pay for imports.


According to Museveni, Ugandans should not worry about the current crisis ”which is easier to solve than deadly COVID-19.”


”Of course, the problem of high commodity prices is much easier to deal with and it is not new. At the beginning of the NRM Administration in 1986 and for the period 1972-1986, following the expulsion of the Ugandan-Indian entrepreneurs by Idi Amin, Uganda experienced continuous high inflation, severe shortages of commodities, very high prices, forex black market, smuggling of goods out and into Uganda and speculation. This history is clear. Therefore, the recent phenomenon of high commodity prices, is, indeed, a problem but it is easier to solve than, for instance, Covid-19,” he noted.


Museveni also trashed claims that the current crisis is due to local factors saying it results from the end of the covid-19 pandemic.


"It is a choice between okubandama (collapse) of the economy on the one hand or survival (kwetaasa, kuhonoka). The real medicine for high prices and shortages, is increased production. Produce more, if you can." - President Museveni 


”I also hear, that some of the producers decided to turn their palm oil into petrol, just like we were about to turn our surplus sugar into petrol as a way of solving the problem of surplus,” he said.


The Ugandan leader also blamed the situation on the war in Ukraine and Western sanctions on Russia saying, ”these have caused shortages of wheat for the bread-eaters that do not include me because I am a muhogo-karo-banana eater and milk drinker, fertilizers, petrol, gas, etc.”


The President advised that Ugandans can enjoy alternative foods like cassava, Empogora, millet and  other indigenous foods because they are rich in proteins, carbohydrates and iron. 


Hon. Agnes Atim-"The President gave local solutions to the problem. As Parliament, we have already given money to the Ministry of Agriculture to start growing sun oil seeds, so the issue of soap and cooking oil are addressed".


"During the State of the Nation Address on 7th of June, 2022, I will touch on the issue of the so called "coffee deal" that was being discussed in Parliament the other day. I could see fundamental disorientation in the position of some of the speakers in Parliament." - President Museveni 

Hon. Agnes Atim - "Taxes is not the only solution to price volatility. The challenge we have is we want someone to tell us what we want to hear. Our economy depends on taxes. When a President says that reducing taxes is a blunder, that is what it is"
Prof Collins

I am a professional Investigative Journalist. I provide trustworthy and reliable information.

3 Comments

  1. You great guy whom I see to be next president

    ReplyDelete
  2. People please let us start some small business in order to overcome poverty am Ivan from kikuube

    ReplyDelete
Previous Post Next Post