Saturday January 29 2011

Mao to cut tax on fuel, scrap PAYE

By Robert Mwanje

Wakiso

The Democratic Party presidential candidate, Mr Nobert Mao, has pledged to cut taxes on fuel and scrap pay as you earn tax (PAYE) on low salary earners.

Addressing rallies in Wakiso recently, Mao said the current government has fixed huge taxes on fuel and individual salaries which has consequently hiked prices for essential commodities in the country. He said it is also useless to tax salaries below Shs400,000 since it infringes on peoples’ purchasing power and ability to live a sustainable life.

“Uganda has the highest fuel prices in East and Central Africa because of high taxes. This is why essential commodities like soap and paraffin are too expensive,”

High fuel prices
He said “it is high time we changed the whole system and handover leadership to realistic leaders.” Fuel prices in most petrol stations have since last year shot up ranging between Shs3,300 to Shs3,050. Paraffin has risen to Shs2,200 while diesel to Sh2, 500 per liter.

However, a government official from the industry who preferred anonymity says that the high demand for petrol during the festive season spilled over into the New Year yet the pipeline capacity has not been upgraded to increase on its output.

The DP presidential flag bearer also pledged an overhaul in the education and health system where he would review the education curriculum, rehabilitation of staff and wage increment.

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