KAMPALA-The Government of Uganda has reiterated its commitment to support local investors to expand their production capacity at low cost as well as well supporting them through favorable policies.
Rt Hon Robbinah Nabanja (in middle) being welcomed by Hon.Evelyn Anite and Hon. Henry Musasizi at Hotel Africana on Wednesday. (Courtesy photo)
In a one day engagement on tax incentives,tax policies & tax administration, held at Hotel Africana, Ugandan investors raised several issues affecting their operations before the Prime Minister Rt Hon Robbinah Nabanja , Ministers from Finance Ministry and line government Agencies, who promised to address them in the shortest period possible.
The NRM government is focused at creating tax environment that is conducive to businesses and fair to all tax payers.
Its through partnership with government and investors that we can achieve our development goals.”
She therefore noted that she took into consideration all the concerns which were raised by the Investors and promised to hold a meeting with leaders of this group in future inorder to get a uniform stand with suggestions which will later be presented before the cabinet for further management.
“Tax incentives are essential, we must ensure that they are effectively targeted, transparent and provide value for money.
The government Is committed to continuously review and refine tax incentive frame work to maximize its effectiveness and minimize revenue losses.”
She further added that incentives play a key role in attracting investments in key sectors like manufacturing as well as fostering industrialization and thus promised that thr government will continue giving incentives to all investors with the required qualifications.
Hon. Henry Musasizi, the Minister in charge of General Duties in Ministry of Finance, while representing Hon. Matia Kasaija the Minister of finance at this meeting , noted that this engagement is timely since he has always been asking the Ministry officials to get out the board room and interact directly with the people they serve.
“As government, there is a lot of progress which we have made and therefore Its important that you should first appreciate what we have done for the Private Sector and then ask for more.”
He therefore thanked the Private Sector for their continuous payment of taxes which have helped Government in its operations at the same time used in provision of public goods.
“Interms of infrastructure, 600 million dollars have been passed for infrastructure development in greater Kampala. We are launching this project on 12th this month and H.E the President is going to be the one to lead the launch.”
Minister Evelyn Anite addressing the investors
Hon. Evelyn Anite , the state Minister in charge of Privatization and Investments stated that this dialogue is very important because it will guide tax policy on incentives and exemptions
“The peace and security which was brought in by the NRM government, have provided a conducive environment for investments country wide. The government therefore needs to work closely with the private sector players to grow the economy ”ten-fold from USD 50 billion to USD 500 billion.”
She further urged the investors to take advantage of the funding from Uganda Development Bank (UDB) to grow their businesses than borrowing from banks with high interest rate.
Concerns from investors
Mr. Deo Kayemba, Chairman Uganda Manufacturer’s Association (UMA) , requested government through Uganda National Bureau of Standards (UNBS) and other agencies to crack a whip on Counterfeit dealers who are on high rise in the country.
“We all know that our value chain is being affected by these products.Nkrumah road , Container village and Arua Park are reknown centers of fake products. I ask myself, why should the government just look on as our country goes to the grave?” asked Kayemba
Mr. Robert Kitenda Gobii, the head of marketing, Movit Africa raised a concern, that most local investors are not considered when it comes to tax incentives to the extent that although most of them have the qualifications required, but they have never been considered to benefit from that policy.
“Issues concerning local investors need to be taken with more plight ,for example today , Movit is the biggest manufacturer of Beauty and personal care products in East Africa and among the top big five fully indigenous tax payers in Uganda. They say that when you have invested 300, 000 USD you qualify for a ten year tax holiday on income tax, we have all the above but we have never been enjoyed that incentive.”
Guster Lule Ntake , one of the prominent local investors asked government agencies like UNBS, URA and others to reduce on the bureaucracy and delays involved in their operations because it has affected business operations thus leading businesses men into losses.
“The process of getting “Q” mark alone is very tiresome. I have been tossed around to the extent that one time , I asked to take UNBS staff to pick the samples of my products but they refused. I have taken my samples to government laboratory at Kyambogo but UNBS has failed to honor them which has left me with 200 metric tones of already manufactured bar soap.
Minister Anite in response to Ntake’s queries, promised that she is going to hold an immediate meeting with all the stakeholders involved to have the matter resolved in the shortest period possible.
Mr. Abel Kagumire, the Commissioner in charge of Customs at URA while representing the Commissioner General, commended the organizers of this engagement and acknowledged receipt of all people’s concerns which he promised that they are going to address them as soon as possible.
“Hotel exemption, we promised to review the list because it has been brought to our attention several times and we have also forwarded it to the policy makers.”
He also pointed out that most of the questions raised are a clear indication that still have a gap in tax education , which prompted URA to come up with the new division aimed at sensitizing the public about taxation system.