The First Deputy Prime Minister and Minister for East African Community Affairs, Rebecca Kadaga, has criticised the government's decision to impose a tax on diapers, a measure that was approved by Parliament in May 2023.
This tax was part of the Value Added Tax (Amendment) Bill, 2023.
The government's move to tax diapers sparked public outrage, with many questioning how such a crucial item for the well-being and hygiene of babies could be targeted.
But speaking on Wednesday, former Speaker Kadaga added her dissenting voice to the controversy, criticising the Ministry of Finance for ignoring public opposition to the tax.
Speaking at the East African Community Post-Budget Dialogue for the 2024-25 financial year, Kadaga described the tax on diapers and sanitary towels as discriminatory.
"I want to implore the Ministry of Finance to listen when stakeholders express their views about tax measures, their impact, and their effect on the population," she said.
"Often, I believe the Ministry is more driven by the need to collect revenue without considering the implications of their methods."
Kadaga questioned the rationale behind taxing essential items like diapers and sanitary pads.
"How can you tax children? How can you tax babies? Why? Tax beer, tax something else.
"They want money because of the number of children who use diapers and the number of women who buy menstrual pads, leading to a discriminatory tax. These are issues you need to listen to, Mr Moses Kaggwa," she added.
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Mr Kaggwa is the director of economic affairs at the Ministry of Finance.
At the time of passing the tax, the legislators appeared to have erroneously focused on adult diapers, reasoning that the items were being used by homosexuals and thus making them expensive would reduce the practice.
In March, some legislators expressed regret over their decision to impose the tax.
The MPs admitted that the tax has instead made diapers expensive for the elderly and people with disabilities who rely on them.
Flavia Kabahenda, the Kyegegwa District Woman Representative said: "On the World Disability Day in Mbarara, I realised that the people with hydrocephalous and spina bifida are living on pampers and these pampers have become expensive from the time we slapped a tax on pampers."
"I think we made a mistake as Parliament to impose taxes on diapers because we thought we would help parents to reduce use of diapers in order not to spoil their children, but we have discovered that there are elderly people who need to use diapers and there are also people with disability that rely on diapers in order to protect their dignity in society."
Ms Kadaga said that while taxation is essential for the government to fund public services, investing in infrastructure, and promoting social welfare, tax policies must be equitable, efficient, and conducive to economic growth.
Kadaga's criticism highlights the need for tax policies that are fair and considerate of their impact on vulnerable populations.
