Karuhanga Calls for Temporary Fuel Tax Cut Amid Rising Cost of Living

Karuhanga Calls for Temporary Fuel Tax Cut Amid Rising Cost of Living

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Gerald Karuhanga, the Member of Parliament for Ntungamo Municipality, has called on the government to temporarily reduce taxes imposed on fuel, arguing that the current tax burden is worsening the economic hardships faced by many Ugandans.

Karuhanga said the government is collecting about Shs1,550 in taxes on every litre of fuel sold, a figure he believes significantly contributes to high pump prices. According to the legislator, reducing fuel taxes would provide immediate relief to households, businesses, and transport operators struggling with the rising cost of living.

He noted that fuel prices have a direct impact on the broader economy because transportation costs influence the prices of essential goods and services. When fuel becomes more expensive, the cost of moving goods across the country rises, often leading traders to pass those expenses on to consumers.

The MP argued that Uganda is facing a difficult economic period, with many citizens grappling with high living costs, business challenges, and reduced household incomes. In such circumstances, he said, government intervention through tax relief could help ease pressure on ordinary citizens and stimulate economic activity.

Karuhanga further urged policymakers to consider temporary measures that cushion the public during periods of economic strain, emphasizing that such interventions should prioritize the welfare of citizens and support struggling businesses.
 
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