Home » Breaking News, Uganda News » Government Impose VAT on Water and Kerosene

By Jumah Nsubuga

Government has imposed excise duty on Kerosene of 200shs per liter and VAT on water and wheat flour by 18%.

The minister of finance Maria Kiwanuka who described the budget as historical also introduced 10% excise duty on mobile money services, 18% VAT on domestic water, 200,000 registrations of motorcycles among others.

The minister while presenting the 2013/14 budget with the Theme “the journey continues towards socio-economic transformation in Uganda” put much emphasis of infrastructure most especially road construction and improving service delivery to the Ugandan citizen.

Some legislators say that, government has raised taxes in a bid to raise revenue following the donors scaling down on their funding which now government is struggling to raise 81% of the required resources while donors will only contribute 18.9% of the budget.

In the 2013/14 government committed to support KCCA to improve the roads in the city to prevent congestion in the city.

In the budget, government intends to spend 25.7 billion shillings to up lift rural areas through the rural electrification program and light up all district headquarters, fast truck Kenya –Uganda –Rwanda Oil pipeline, support scientific innovations as well as revamping NAADS.

To improve on teachers welfare, government in the coming financial year has allocated 5bshs for teachers SACCO and a loan scheme worth 5bshs is to be put in place targeting science and engineering students who will have to be bonded by government.