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{
    "id": 246659,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/246659/?format=api",
    "text_counter": 79,
    "type": "speech",
    "speaker_name": "Mr. Kimunya",
    "speaker_title": "The Minister for Finance",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": " Mr. Speaker, Sir, while this may appear, on the face of it, to increase the cost of fuel, it works out to exactly what the motorists are spending, but when coupled with other measures within the insurance industry which I will be proposing, the elimination of the road licence and improved roads if calculated, the net result is a huge gain for motorists. I, therefore, do not expect any public transport operators to raise fare on account of this. This measure will also raise an additional Kshs5 billion in revenue of which Kshs3 billion will be earmarked for roads maintenance thus bringing the total allocation from the current Kshs9 billion to Kshs12 billion. The remaining Kshs2 billion will be used for rehabilitation and construction of new roads. Improvement of our road network should ultimately reduce the cost of private sector and lead to happy motoring for all of us. Mr. Speaker, Sir, I will now turn to industrial growth and making imported commodities affordable. In order to facilitate faster growth of Information and Communication Technology, create employment opportunities for our youth and make our country a regional leader in ICT, I propose, in keeping the promise and pledge made by His Excellency the President to remove the VAT on computer equipment, computer parts and accessories. In consultation with the Ministers for Finance for Uganda and Tanzania, we have also agreed on a number of measures designed to improve the welfare of our people, reduce the cost of production and offer some protection to our infant industries. There is a whole list of all those and they are contained within the Finance Bill that will be available. However, some of this include removal of import duties on the following: (i) Solar equipment and accessories, including the deep cycle and sealed batteries specifically for solar power in order to promote alternative sources of energy and save our forests. (ii) Filter paper, which is an essential input used in the production of oil, fuel and air filters which are used in the motor vehicle industry. This, further, brings down the cost of motoring. June 15, 2006 PARLIAMENTARY DEBATES 1419 (iii) Wire of stainless steel and nickel bars, rods, profiles and wire, which are essential inputs for the manufacture of arc welding electrodes used widely in metal fabrication. That should bring down the overall cost of construction. Mr. Speaker, Sir we have also agreed to reduce the import duties on unprinted aluminium foil from 25 per cent to 10 per cent to give an incentive to local manufacturers. We agreed to increase the import duty on floor coverings and mats from 10 per cent to 25 per cent. In order to reduce the increased dumping of matches in our country and killing of our local industries we propose to increase the duty on matches from 35 per cent to 50 per cent. Mr. Speaker, Sir, I now turn to the popular subject of excise taxation. The measures that I am proposing under excise duty are intended to address equity concerns and to improve excise tax administration. First, the current excise tax payable to the Exchequer is only Kshs42 per litre or Kshs21 per 500 ml bottle of malt beer. I propose to increase the excise tax on malt beer from Kshs42 per litre to Kshs48 per litre. This modest increase of Kshs3 per bottle will allow those loyal malt beer drinkers to contribute more towards financing our development priorities as they enjoy their drink."
}