Business 28 April 2026 Daily Monitor (Uganda)
Ex-Finance Minister Suruma Opposes New Fuel Taxes in Uganda
Former Finance Minister Ezra Suruma has advised against imposing additional taxes on fuel, despite the government's recent approval of a Shs200 increase on petrol levies to Shs1,750 per liter. He stresses the need for fiscal discipline, spending prioritization, and robust institutions to tackle Uganda's rising debt and economic challenges. Source: https://www.monitor.co.ug/uganda/business/finance/ezra-suruma-i-would-not-recommend-more-taxes-on-fuel--5439800
Uganda faces mounting economic pressures, including public debt exceeding 50 percent of GDP, high interest payments, and demands for infrastructure and services. In a recent interview, former Finance Minister Ezra Suruma reflected on lessons from past recoveries, emphasizing fiscal discipline to avoid excessive borrowing and money printing.
Suruma highlighted the dangers of non-concessional loans, urging a balanced approach for big projects like railways and hydropower. He stressed prioritization in spending, citing coffee production’s success through targeted funding that boosted output from 3 million to nearly 10 million bags.
On the Parish Development Model (PDM), he pointed to weak local implementation and accounting, recommending a development bank to manage funds professionally and foster savings. Suruma supported higher taxes on second-hand clothes to aid local textiles but insisted revenues fund cotton and manufacturing revival.
Agriculture needs more support for storage, genuine fertilizers, and local production to cut imports and losses. Despite the new budget’s fuel levy hike, Suruma said he would not propose more fuel taxes and called for ring-fenced PDM funding via institutional reforms.
Uganda’s growth hinges on discipline, prioritization, and strong institutions, he concluded.
Source: Daily Monitor (Uganda)