Defence Minister Kiryowa Kiwanuka Defends Shs200 Fuel Tax Increase Amid Rising Pump Prices

[Eronda]

Defence Minister Kiryowa Kiwanuka has defended the government's decision to increase fuel excise duty by Shs200 per litre, saying authorities were fully aware that the measure would contribute to higher fuel prices but considered it necessary at the time.

Kiwanuka made the remarks in Parliament while responding to concerns raised by Leader of the Opposition Joel Ssenyonyi, who questioned the government's position on fuel prices. Ssenyonyi argued that government officials had previously described the tax increase as minimal, yet were now pointing to it as one of the factors behind the rise in fuel costs.

In his response, the minister maintained that government anticipated the impact of the tax on pump prices when the proposal was debated and approved.

“Of course, the excise duty is a point you raised, but I think government was alive to that. We all discussed it and said, yes, it will increase the price, but we thought it was necessary at that point,” Kiwanuka said.

The minister's comments come amid growing public concern over increasing fuel prices, which have pushed up transport costs and added pressure to household budgets and businesses across the country.

Kiwanuka's defence of the tax increase signals government's position that while the measure contributed to higher fuel prices, it was implemented with full knowledge of its likely effects and was deemed important for broader fiscal and economic objectives.

The exchange also highlighted the ongoing debate between the government and opposition over the causes of rising fuel prices and the burden being placed on ordinary Ugandans. Critics argue that tax measures have worsened the situation, while government maintains that both domestic and international factors continue to influence fuel costs.