The increase in tax on kerosene a political time bomb.
Drake Nyamugabwa
The proposed income bill by Parliament is to increase the tax on kerosene from 200sh to 500sh effective 1st July 2024. This was revealed by the parliamentary committee chairman on Finance. He revealed this when meeting a team of leaders from Kacita and private sector foundation.
In their petition to parliament, magufuri didn't get sastified with Hon nandala mafabi's justification on kerosine ,being used for mixing it with dieselfuel. "why transfer risk from Rich man to poor voter?" he challenged the legislators not create problems for voters but rather do legislation work. When he asked for the reason for the increase,hon,mafabi told him it was all about discouraging the adulteration of diesel fuel by unscrupulous fuel dealers.
Hon kateshubwa admired magufuri z analytical presentation and wondered why ntungamo municipality didn't send him to parliament, , this made Hon MP sewugu Joseph and Hon nandala mafabi to say that they will make sure that magufuri joins an opposition party, rumours day opposition has been in secrete strategy to win this blue eye boy but. It seems he is very principled
While addressing the press after his presentation to the committee, Afande Magufuri wondered why the executive couldn't reign over criminals who adulterate fuel and instead legislation targets the voters who are the poor? "How can the poor be taxed for the rich to be left free" Magufuri wondered!. He further wondered as to whether this was a trick to recover PDM money from the peasants since they had been given 1mln!! He wanted to know if legislation was about raising money from peasants to keep the rich richer and keep the poor poorer!!!
Magufuri avers that there's no nation that prospers because of over taxing its citizens but rather by letting them be into production. He says that the economy is stressed and the country now is being handed over to the hands of foreigners. The foreigners come with money in the country which is tax freeup money and when it has not been borrowed at high interest rate from their countries of origin. They invest it here and make profits and which they repatriate back to their countries of origin. For example MTN as a telecom company from South Africa for the three quarters of the year 2023 alone had a revenue of 1.9 trillion( usd 518.1mln). Put of which 665bn was the annual profit and all was repatriated to build other economies!!
On the other hand, the Ugandans borrow from commercial banks at a high interest rate of over and above 24% per annum. Whenever they try investing that borrowed money at that rate they only get little profits which is highly taxed and yet much of these taxes as collected by URA is lavishly spent by those in power!!
Magufuri is pondering on the question as to whether foreigners are now in charge of this country called Uganda.!!
Magufuri gave a call to government to borrow a leaf from Ethiopia where forex money is controlled to flow in or flow out of the country by both local and foreign investors which has helped to shape the country's economic landscape .
