KAMPALA, UGANDA — Hon. Karim Masaba, the Member of Parliament representing Industrial Division, has called on the government to consider reducing excise duty on petroleum products, arguing that high fuel costs have far-reaching effects on Uganda’s economy and the movement of goods and services.
Masaba made the proposal during parliamentary proceedings, highlighting the importance of petroleum products in supporting economic activities across the country. His appeal focuses on the need to review fuel taxation as one possible measure to ease the cost pressures affecting businesses and ordinary Ugandans.
According to the legislator, fuel plays a central role in the country’s supply chain, influencing transportation, production, distribution and the final prices consumers pay for essential commodities.
The proposed reduction in excise duty is intended to help ease the financial burden associated with fuel consumption. Since petroleum products are widely used across different sectors, changes in their prices can have a direct impact on the cost of doing business and the affordability of essential goods.
Transport operators are among the groups affected by changes in fuel prices because petrol and diesel are essential to their daily operations. Increased fuel expenditure can place pressure on transport fares and freight charges, with possible consequences for passengers, farmers, traders and businesses that depend on transportation.
The cost of transporting agricultural produce and other essential commodities can also influence prices in markets. Masaba’s argument highlights the need to examine fuel taxation in the wider context of the supply chain, where increased operating expenses can affect multiple stages of production and distribution.
The legislator’s proposal also raises questions about how the government can balance revenue collection with the need to protect consumers from rising living costs. Although excise duty contributes to government revenue, changes to the tax structure could be considered in light of their potential economic and social effects.
For small businesses, manufacturers and traders, fuel expenses can represent a significant part of their operating costs. Any sustained increase in these expenses may reduce profit margins, increase the prices of goods and services, and place additional pressure on households already struggling with the cost of living.
Masaba’s remarks add to the broader debate over the management of fuel prices and the taxation of petroleum products in Uganda. His proposal calls for policymakers to consider how fiscal measures affect not only government revenue but also economic productivity, business operations and the welfare of citizens.
The government’s response to the proposal will be important in determining whether a review of petroleum excise duty can form part of broader efforts to reduce pressure on the supply chain. For now, Masaba’s call places fuel taxation among the issues requiring continued parliamentary scrutiny as Uganda seeks to balance revenue needs with the economic concerns of its population.
