The First Deputy Prime Minister and Minister for East African Community Affairs, Rebecca Kadaga, has strongly criticized the government’s tax on diapers, which was passed by Parliament in May 2023 as part of the Value Added Tax (Amendment) Bill, 2023.
The tax has sparked widespread public outrage, with many questioning how the government could target an essential item crucial for the well-being of babies. Kadaga voiced her dissent, criticizing the Ministry of Finance for ignoring public opposition.
“I want to implore the Ministry of Finance to listen when stakeholders express their views about the tax measures and their impact on the population,” Kadaga said at the East African Community post-budget dialogue for the 2024/25 financial year. She described the tax on diapers and sanitary towels as discriminatory, suggesting instead to tax items like beer.
Kadaga noted that while taxation is vital for funding public services and promoting social welfare, tax policies must be equitable and efficient. “We must strive to create a tax environment that encourages investment, supports business development, and ensures that the burden is fairly distributed among all segments of society,” she said.
Kadaga also addressed the budget allocations for East African Community (EAC) partner states for the upcoming financial year. The EAC budgets are estimated at $31 billion for Kenya, $18.9 billion for Tanzania, $19.2 billion for Uganda, and $1.5 billion for Burundi.
The budgets aim to secure resources to match expenditure while improving citizens’ welfare. Uganda’s allocation has significantly increased to UGX 72.130 trillion. The African Development Bank projects the region’s growth to rise from 3.5 percent in 2023 to 5.1 percent in 2024 and 5.7 percent in 2025, boosted by infrastructure development and increased regional trade.
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