Cabinet yesterday refused to reduce the taxes on fuel arguing that doing so would lead to a lot of smuggling across the borders.
Cabinet on Thursday refused to reduce the taxes on fuel, on grounds that such a move could pave way for smuggling across the borders.
An impeaccable source who attended the emergency meeting at State House Entebbe, told Uganda Radio Network that a proposal by some ministers to cut fuel prices was defeated by technocrats from the finance ministry, who assured President Yoweri Museveni that Uganda’s current economy is doing well.
The president asked the ministry of finance officials to explain why people were complaining of numerous economic hardships if the economy was doing well. The finance officials cited factors such as fiscal performance during the last financial year being above targets, a sustainable external debt and a better economy compared to other countries in the region.
The refusal to reduce the fuel prices was confirmed on Friday during a press conference addressed by six ministers at the Uganda Media Center in Kampala.
Irene Muloni, the minister of Energy and mineral development told journalists that more economic hardships would be created if government accepted to cut the fuel prices.
Cue In: “The fuel prices in Rwanda..…….”
Cue Out: “……..live a better life in future.”
The Minister of State for Finance, Jachan Omach, said many of the issues currently affecting Uganda are external and not within the control of the government. He said Uganda is mainly an importing country and the solution lies in creating more export opportunities for the country, so that more dollars can start coming into the country.
Omach and his Permanent Secretary, Chris Kasaami said Uganda’s current economy was robust and solid and not in danger of a debt crisis.
He said that the biggest reason for the increase in fuel prices was external, mainly coming from the political crises in Libya and not internally within Uganda.
Cue In: “Lybia used to supply one third…..…..”
Cue Out: “……than what we are exporting”
Five ministers were assigned by the cabinet to explain the results of the cabinet meeting at today’s press conference.
They were led by Jachan Omach and included Tress Buchanayandi, the minister for Agriculture, Irene Muloni for Energy and Mineral development, Mary Karooro Okurut for Information and National guidance and that of state for Trade, Davbid Wakikona.
emergency cabinet meeting