Parliament petitioned over high internet, power, water tariffs

PARLIAMENT | INTERNET | POWER TARIFFS 

KAMPALA - Gateway Research Centre (GRC) has petitioned Parliament to intervene and ensure that government reduces the costs of internet, power and water as a necessary intervention for the country’s economic recovery. 

The team, led by the executive director, Susanie Nannozi Ggoobi, told the MPs that the high internet rates, power and water tariffs are responsible for the high cost of doing business in Uganda, which stifles businesses and scares away foreign investors. 

GRC implored the executive to scrap the 12% excise duty on internet data. 

The team argued that the tax is stifling access to internet in Uganda and causing the country to lag behind the rest of the world in utilising the opportunities that come with digitisation. “You will bear witness with us that the current pandemic itself has led to a paradigm shift from the traditional physical management and business approach to digital technology. 

"There is increasingly high need for virtual meetings, online learning and transaction of business which all necessitate affordable internet,” Godfrey Lukyamuzi, the policy analyst for GRC, said. 

GRC argued that with a high cost of internet, the country is experiencing a decline in internet usage among Ugandans, slow growth of online businesses, and stifling innovations and creativity in digital technology. 

The research firm informed Parliament that out of their ongoing research about the 12% excise duty on internet, 87% of them want the tax scrapped, 4% were found to be ignorant about it, 6% were undecided and 3% had no issue with it. 

Regarding electricity and water, Lukyamuzi said: “We also express discontent about the high electricity and national water charges arising from heavy taxes worsened by the monthly user service fee charged, even when the client has not been using water and electricity with a redundant meter.” 

GRC proposed to Parliament the need to scrap the excise duty of 12% on internet, reduce VAT on water to 10% from 18%, reduce the electricity connection charges and reduce the unit cost of electricity. 

GRC also wants Parliament and the executive to ensure the monthly yaka service fee is reduced by 50% from sh3,360 to sh1,680. 

Parliament’s finance committee chairperson Dr Kefa Kiwanuka thanked the team for presenting their proposals. 

Kiwanuka appealed to the group to do more research on their proposals and to engage other experts so that they furnish them with more compelling evidence-based information, which they will use to influence the house on their proposals. 

Rwampara County MP Amos Kankunda commended GRC on calling for a reduction in electricity connection fees, arguing that so many Ugandans do not have electricity because of high connection charges.