FULL SPEECH: What President Museveni said about rising commodity prices, tax cuts, fuel

What President Museveni said about rising commodity prices, tax cuts, fuel.

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President Yoweri Museveni.

President Yoweri Museveni has ruled out the idea of tax cuts and subsidies as one of the mechanisms of curbing the current economic crisis.

”With the internally produced commodities, I was tempted to look at removing taxes. However, the tax loss would cripple our budget and the planned developments,” said Museveni during Sunday’s presidential address on rising commodity prices.

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The president also added; “It is the continued development of the economy that will get us to the stability of a more integrated economy.”

Mr Museveni described subsidies and removing taxes from imported goods as definite suicide which would deplete both family savings and national reserves, leading to the inability to pay for imports.

According to Museveni, Ugandans should not worry about the current crisis ”which is easier to solve than deadly COVID-19.”

”Of course, the problem of high commodity prices is much easier to deal with and it is not new. At the beginning of the NRM Administration in 1986 and for the period 1972-1986, following the expulsion of the Ugandan-Indian entrepreneurs by Idi Amin, Uganda experienced continuous high inflation, severe shortages of commodities, very high prices, forex black market, smuggling of goods out and into Uganda and speculation. This history is clear. Therefore, the recent phenomenon of high commodity prices, is, indeed, a problem but it is easier to solve than, for instance, Covid-19,” he noted.

Museveni also trashed claims that the current crisis is due to local factors saying it results from the end of the covid-19 pandemic.

”I also hear, that some of the producers decided to turn their palm oil into petrol, just like we were about to turn our surplus sugar into petrol as a way of solving the problem of surplus,” he said.

The Ugandan leader also blamed the situation on the war in Ukraine and Western sanctions on Russia saying, ”these have caused shortages of wheat for the bread-eaters that do not include me because I am a muhogo-karo-banana eater and milk drinker, fertilizers, petrol, gas, etc.”

Full Speech:

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