RUKUNGIRI – A: Tax relief measure on utilities and essential goods for 6 months:
Government moves to implement VAT (18%) exemption on Water, Energy services (grid electricity/yaka, and solar home systems) – and essentials; Soap and Salt. This 18% VAT is a direct price concession to consumers. For Utilities, this measure should benefit consumers who consume lowest units per month. E.g. for electricity – not more than 30 yaka units a month.
B: Food relief for mostly vulnerable urban/ peri-urban youth and women:
In absence of national cereal vaults, Government provides initial UGX 40 billion for cities and municipalities to procure and store maize and beans at district/city headquarters. Chief Administrative Officers (CAOs)/Town Clerks work with Operation Wealth Creation (OWC) to build Operating Procedures for distributing food relief to targeted food stressed urban individuals during this #Covid-19 crisis.
C: Provide extra Cash relief for elderly for 6 months:
Increase monthly payout to elderly from UGX 20,000 to UGX 30,000. The elderly are the most vulnerable yet continue to head families with orphans. This is the reality of Uganda’s social structure. At this time of #covid-19 crisis, our seniors need extra spend on essentials like soap. Seniors have been receiving some extra transfers from relatives in towns who are not in position to help in this Covid-19 crisis.
D: Mobile Money transaction fees relief:
To share burden, telecoms should cut into half sending and receiving money charges. The cost-share for reduction of Mobile Money charges should be borne by government (through tax reduction) and Telecoms (profit margin reduction). This will allow increased flow of help-financial transactions during this #COVID-19 crisis.
E: Government finds a legal solution and directs NSSF to advance 10% to savers:
NSSF is expected to be running a healthy liquidity ratio. The 10% advance /payout is below the interest rate that NSSF advanced to savers in 2019. Therefore, this has no negative implications for the old age replacement income that NSSF is. This should be layered and targeted, prioritizing NSSF savers who are no longer in employment, yet can’t access their savings because they haven’t clocked the retirement age.
F: Governments solicits views from Landlords and Banks to model a rent relief and loans relief.
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Morrison Rwakakamba from Nyeibingo Village, Kebisoni, Rukungiri.
