Business
MPs tell Gov't to provide sh2.6b for operationalizing free zones Act
Publish Date: May 22, 2014
MPs tell Gov't to provide sh2.6b for operationalizing free zones Act
The Kioga County MP, Anthony Okello, explained that the law covers all types of special economic activities such as export processing, manufacturing under bond, industrial parks, technology parks, tourism parks and free trade zones.
  • mail
  • img
newvision

By Umaru Kashaka

Legislators on the finance committee have asked government to allocate sh2.6b to enable the operationalization of the Free Zones Act in order to modernize infrastructure in the country.


The Free Zones Bill enacted into law last year, defines ‘Free Zone’ as ‘a designated area where goods introduced into the designated area are  generally regarded, so far as import duties are concerned, as being outside the customs territory and includes exports processing zones or free port zones.’

This means that the goods that land in that designated area, or are manufactured and sold or re-exported are not subjected to customs duties and other rules of production that would apply outside the zoned area.

The committee noted that the Act is vital in promoting both domestic and foreign investment or establishments which will increase employment opportunities and household incomes in turn bringing about economic development.

“When we were passing this Bill, government knew that they will fund the activities within the Act. So they should find the money and also set up an authority that will set the operational rules of the zone, and the developers to ensure that the zones are operating in accordance with the set rules of procedure,” said the Kyaddondo North MP and committee chairperson Robert Ssebunya.

The Kioga County MP, Anthony Okello, explained that the law covers all types of special economic activities such as export processing, manufacturing under bond, industrial parks, technology parks, tourism parks and free trade zones.

“This will enable flexibility in the regulations of particular forms of economic activity under regulations passed under this law and would eliminate the need to pass entirely new legislation for new types of special economic activity,” he stressed.

The lawmakers said they worked tirelessly to ensure the country gets a specific policy framework for strategic sector investments in the country.

They said they had wanted free zone to be controlled both by a Bureau made up of the board of Uganda Investment Authority (UIA) in collaboration with the Uganda Revenue Authority, but UIA has also got its own issues like the lack of board.

According to the Executive Director of the East African Center for Trade Policy and Law, Jacquiline Pimer, all the activities of the zones will be subject to customs supervision by the officials of Uganda Revenue Authority.

“The tax laws of Uganda including the East African Community Customs Management Act shall provide the tax related incentives for operation of the zones,” she said.

RELATED ARTICLES

Special economic zone to be opened in Nakaseke

Chinese firm to build Rakai free trade zone

Sudan, China to set up agricultural free-trade zone

EAC urged to create tax-free zones

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
EAC Cooperative Societies Bill seeks to stimulate trade
The level of optimism is high among co-operatives in East Africa, in light of the ongoing East African Community (EAC) Co-operative Societies Bill 2014 being pushed to be enacted into law....
Insurance Institute pushes for public awareness
The Insurance Institute of Uganda (IIU) has kicked off a countrywide public awareness campaign, meeting traders at their places of work, a move meant to demystify insurance....
Real Estate sector players win awards
Leading local real estate online platform Lamudi.co.ug recently rewarded the top real estate dealers, agents and developers in the country who are transacting business online especially through its platform....
Good seed door for good harvest
Just like humans look for the good traits when choosing a partner for procreation, farmers should look for good seeds for better production....
Vision Group set to crown best farmers
The search for Uganda’s leading farmers is over. Winners of the Vision Group’s Best Farmers competition will be revealed today at Kampala Serena Hotel....
World
The planet's poorest nations have failed to cash in on strong economic growth due to a lack of structural reforms, says the United Nations....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter