Summary:
- Members of Parliament contend that this tax hike could potentially boost Uganda’s revenue from US$95.3 million (Shs362.412 billion) in FY2022/23 to US$726.49 million (Shs2.762 trillion) by FY2026/27.
KAMPALA: Parliament’s Health Committee is advocating for a 20% increase in taxes on harmful products such as alcohol and tobacco to fill the void left by donors scaling back funding to Uganda’s health sector.
Members of Parliament contend that this tax hike could potentially boost Uganda’s revenue from US$95.3 million (Shs362.412 billion) in FY2022/23 to US$726.49 million (Shs2.762 trillion) by FY2026/27.
In addition, the Committee is urging the Government to allocate revenues from the social media tax towards upgrading Health Centers and supporting community health financing, given the underfunded status of the recently launched community health strategy.
Charles Ayume, Chairperson of the Health Committee, emphasized the need for innovative domestic financing mechanisms in light of diminishing external support. He presented these findings while discussing the 2024/25 ministerial policy statement for the health sector.
Meanwhile, the Public Accounts Committee (PAC) is preparing to inspect the construction site of Lubowa hospital as part of its investigation into reports from the Auditor General. The Auditor General, John Muwanga, revealed in his December 2023 report that Shs286 billion had been paid to the facility’s proprietor without corresponding progress on the construction.
Muwanga’s report highlighted that by January 11, 2022, only 23% of the contracted works had been certified by the owner’s engineer, suggesting potential overpayment amounting to approximately Shs286 billion.
Additionally, the Auditor General disclosed that seven promissory notes worth US$133,156,208.23 (Shs476.5 billion) have already been redeemed for the Lubowa project, with an 8th Promissory note worth Shs88.971 billion scheduled for redemption on December 31, 2023, bringing the total investment in Lubowa to Shs600.858 billion.
