BY BANKERS REPORTER
The Secretary to the Treasury, Ramathan Ggoobi has said the government is unlikely to scrap or reduce any taxes as a measure to curb high inflation.
Ggoobi said the removal or reduction of taxes will have a significant impact on government operations especially in the health sector and other public services countrywide.
Ggoobi described the move suggested by some legislators as an “ill-suited policy for addressing rising prices” yet the primary sources of commodity price increases are largely external and temporary.
Commodity prices countrywide have been rising at a fast rate since January, forcing Ugandans to adjust their budgets in a country that is recovering from the devastating impact of the Covid-19 pandemic.
There has been a steady rise in prices of commodities such as fuel, oil, and soap among others.
For instance, a bar of soap, costs between sh8,500 and sh10,000, up from about sh3,500 in January.
A kilogramme of rice goes for between sh4,500 and sh5,000, depending on the type, up from sh3,000, while that of maize flour (posho) has climbed to Shs3,000 from Shs1,500 in January.