Members of Uganda's Parliament are calling for urgent government action to address rising fuel and food prices, warning that the increasing cost of living could push more citizens into poverty and threaten economic stability. The legislators are demanding that the government reduce taxes on petroleum products, utilize its foreign exchange reserves to stabilize the shilling, and cut non-essential public expenditure. These demands come after Finance Minister Henry Musasizi's statement on the State of the Economy, which MPs say failed to provide concrete measures to alleviate growing economic pressures on households.
The concerns were voiced by various MPs, including Ntungamo Municipality MP Gerald Karuhanga, who expressed disappointment with the minister's response. Karuhanga cited the rising cost of essential commodities, such as matooke, beans, and maize flour, which have significantly increased in price. He also noted that petrol prices have risen to between 7,500 and 10,000 Shillings per litre at some fuel stations. Karuhanga questioned the government's decision to accumulate foreign exchange reserves while consumers struggle with rising prices, highlighting that Uganda's reserves increased by about 2.4 billion dollars last year.
Karuhanga proposed reducing taxes on fuel and establishing an industrial park fund to support domestic manufacturers, reduce reliance on imports, and lower demand for foreign currency. He emphasized the need for practical measures to stabilize prices, protect household incomes, and strengthen domestic production. Other MPs, such as Katikamu South MP Hassan Kirumira, attributed some of the economic pressures to declining donor support, capital flight, and reduced remittances from Ugandans living abroad.
Kirumira urged the government to address concerns about human rights and political developments, arguing that doing so could help restore donor confidence. He also questioned Uganda's export performance and repeated delays in the anticipated commencement of oil production. Kirumira emphasized that the government needs to explain the assumptions underpinning its budget in light of the country's economic challenges.
Luwero District Woman MP Brenda Nabukenya and Mbale Industrial Division MP Masaba Karim also voiced concerns about the impact of rising fuel costs on locally produced goods. Nabukenya called for a review of excise duty and other taxes on fuel and essential commodities, alongside cuts in non-essential government expenditure. Karim criticized the government's advice for Ugandans to rationalize their consumption, arguing that many households were already struggling to afford basic meals.
Karim urged the government to consider reducing fuel taxes, citing Kenya's reported reduction of Value Added Tax on petroleum products from 16 per cent to eight per cent as a possible model. Kilak South MP Gilbert Olanya warned that rising fuel and transport costs were placing a disproportionate burden on low-income households. He gave the government 14 days to present solutions, warning that continued economic hardship could trigger public discontent.
Other MPs, including Mukono District Woman MP Sheilah Draville Amaniyo, Wakiso District Woman MP Betty Ethel Naluyima, and several others, demanded an explanation for the weakening shilling and the disparity between official economic growth projections and the declining purchasing power of ordinary Ugandans. They emphasized the need for the government to take decisive action to address the economic challenges facing the country.
Key points
- MPs demand reduction in taxes on petroleum products to alleviate economic pressures
- Government urged to utilize foreign exchange reserves to stabilize the shilling
- Legislators call for cuts in non-essential public expenditure to address rising cost of living
