Business
Seed traders petition finance minister over taxes
Publish Date: Jul 14, 2014
Seed traders petition finance minister over taxes
Some of the seeds ready for sale. PHOTO/Prossy Nandudu
  • mail
  • img
newvision

By Prossy Nandudu

Uganda Seed Traders Association (USTA) are petitioning the  ministry of finance to reconsider the taxes levied on agricultural in puts, seeds and agriculture finance saying the taxes will make exports uncompetitive and affect local food crop production.
 
They also said that taxing basic agricultural inputs as proposed in the 2013/2014 budget will in the short run negatively affect the entire economy.

In a statement issued by the association, seed traders say that because of the higher input costs: fertilizers, seeds, equipment, there will be less input use, thus lower yields expected.

Workers in one of the grain industries. PHOTO / Prossy Nandudu

“Lower yields will result into food shortage. Higher food prices disable exports due to un-competitiveness and lead to less foreign currency inflows,” said the statement.

For the past 10 years, the agriculture sector has experienced tremendous growth due to increased access to improved certified seeds, improved inputs and access to markets.

Studies show that the average adoption of improved seed, fertilizers and modern pesticides by smallholder farmers for production ranges from 10-25%, being very low in the region.

The seed sector was liberalized in 1994 and grew over years from 2000 metric tonnes to the current 12000 metric tonnes.


The total sector is estimated at 20 million USD turn-over and classified in 2 types of seeds which include the agricultural seeds, with an estimated sales of 13.000.000 USD, mostly locally produced, using NARO research results, bulk, condition and made available to farmers and Horticultural seeds, with an estimated turn-over of 7.000.000 USD, mostly imported.
 
The current direct tax contribution by the seed sector is estimated to be over 1.000.000 USD, but the macro economical impact is huge and regional exports alone for cereals in 2012 exceeded 150 million USD last year.

Related Stories

Taxes on agricultural inputs will kill sector, MPs told

UNAFFE asks govt to revise taxes on farm inputs

Agriculture loans can ease inflation

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
How to widen Uganda’s tax base in a large subsistence economy
Uganda’s tax base remains small and the country is grappling with measures on how to widen the tax base in light of decreasing donor funds and pressures to finance the national budget....
UAE Exchange Uganda observed World Food Day
UAE Exchange, the leading global remittance, foreign exchange and payment solutions brand observed World Food Day on 16th October. This year the theme was Family Farming: “Feeding the world, caring for the earth”...
Nigerian cleric warns Uganda over oil curse
Rev Father Edward Obi, a leading civil society activists fighting against the effects of the oil curse in Nigeria has warned Uganda that since oil has been discovered Ugandans are not safe from the negative effects the resource brings....
Oil to spur capital markets – Nsamba
This year marks 18 years since the Capital Markets Authority (CMA) was formed....
UBOS releases Producer Price Index
THE indices for hotels and restaurants indicate that annual prices for hotel services fell by 2.5 percent during the period of April, May and June 2014, compared to the same period in 2013...
KCCA shuts down House of Eden
KAMPALA Capital City Authority (KCCA) together with Uganda National Bureau of Standards have closed House of Eden that manufactures Safi juice and Azur water for allegedly using expired raw materials...
Should the absence of bride price prevent couples from wedding?
Yes
No
Can't Say
follow us
subscribe to our news letter