Africa-Press – Uganda. The Kampala City Traders Association (KACITA) has voiced its opposition to the imposition of value-added tax on diapers through the Value Added Tax (Amendment) Bill, 2023, which levies an 18 percent VAT on baby diapers.
The protests garnered support from traders and other stakeholders during the traders’ post-budget dialogue in Kampala on July 18, organized by KACITA in partnership with Uganda Revenue Authority.
Speaking to journalists on the sidelines of the event, Mr Thaddeus Musoke Nagenda, Chairperson of KACITA, expressed discontentment with the lack of consultation with traders before passing the bill that increased taxation on diapers.
“Why should they start taxing diapers? For us, we are not in support at all, because even the members of parliament should have consulted us. They are supposed to present to parliament what they got from us. Based on the submissions of traders, the public is not contented with what the parliament decided. We are going to contact our legal director and try other avenues. Can the parliament revisit? If it’s too late, we have to utilise now the budget process which has started again so that we present our concerns clearly to the authorities,” Mr Musoke said.
Ms Judith Akello Tracy, the supervisor of domestic taxes at Uganda Revenue Authority, urged Ugandans to support the policy change on diapers.
“I think as Ugandans, we need to support the policy change on diapers for two reasons. One, it’s going to contribute to the revenue in the country, and in that way, we shall be developing Uganda together. But also protect us from the biodegradable diapers that have been affecting our soils in terms of quality, given that Uganda’s backbone is agriculture. It’s a hazard to our health. So it’s in that spirit that we should actually work together to encourage payment of tax on diapers,” Ms Akello said.
On May 4, parliament passed the Value Added Tax (Amendment) Bill, 2023 imposing 18 percent VAT on diapers.
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