Government finally debates the increasing prices on Essential commodities coupled with several issues of national interest. It’s noted that the past two to three months has been dire for ordinary Ugandans with a weekly increasing prices on commodities like soap, salt, cooking oil, kerosene, beans and others, with a bar of washing soap inflated to 8000shs, a litre of cooking oil at 10000shs.
Hon. Nsereko Muhammad, Mpuuga Mathias and others believe government is only left with the tool of taxation as a reduction on taxes on Essential commodities will lower prices. However the budget for financial year 2022/2023 is projected to be greater than precious which does makes tax reduction questionable.
Other commodities like beans and maize that are locally produced are not linked to increase in fuel prices but low productivity yet demand is the same. Therefore there’s need for increase in production especially where Sudan solely depends on food from Uganda. Much food cross the boda to neighboring countries which leaves a gap in the supply chain and hence a rise in prices.
Uganda like any other countries is affected by rise in fuel prices caused by the war between Ukraine and Russia. Government insists it can do very little because the prices are determined by forces of demand and supply. Though There’s a suggestion to allow imported Essential commodities to compete with the locally produced,which will trigger local companies like Mukwano to lower their prices.
With prices Expected to rise more, locals are encouraged to be more rational while making purchases and put more emphasis on consumption. However ordinary Ugandans who live on daily income are already rational to the extent that some households forego some meals.
Can government make taxation reforms as a response to saving the country…Well, we hope so.
