Manufacturers speak out on taxes

Apr 05, 2011

MANUFACTURES want the Government to first put in place an enabling environment for businesses to thrive before it introduces new trading licence fees.

By Florence Nakaayi and Agnes Nantambi

MANUFACTURES want the Government to first put in place an enabling environment for businesses to thrive before it introduces new trading licence fees.

The call follows numerous complaints by the city business community over alleged illegal trade licence fees levied by the Kampala City Council (KCC).

City and municipalities across the country had previously hiked the annual fees to between sh360,000 and sh950,000 for retailers and wholesalers respectively.

But James Mulwana, a top local industrialist, urged the Government to involve traders in the licensing processes to avoid exploitation.

He also wants a corresponding value-for-money for the taxpayers.

“There should be a stage where a taxpayer is given a hearing so as achieve a win-win situation rather than hiking taxes, which discourage or fail investments,” Mulwana said.

“While the Government thinks of increasing licence fees, it should also consider what it has put in place to enable the trader to operate in a smooth environment,” he added. The soft-spoken manufacturer was speaking during the Kampala City Traders Association (KACITA) annual general meeting over the weekend.

He said investors were part and parcel to the country’s development especially in job creation.

Mulwana challenged the Government to set-up a mechanism to boost small-and-medium scale manufacturers and agro-processors to achieve value-addition.

He asked traders to avoid mixing politics and business, but promote unity to advocate their rights.

The traders appealed to the Government to re-vamp the railway and water transport to promote trade in and outside the East African region.

Everst Kayondo, the KACITA chairman, noted that the poor road network and the volatile fuel prices heavily affect businesses, leading to increased costs of products.

The traders also asked the Government to re-own Uganda Airlines to boost tourism.

“Tourists hardly find information about Uganda because of limited access to airline advertising channels on a Ugandan plane,” Kayondo said at in Kampala.

KACITA made a number of proposals to the 2011/2012 financial year, including the promotion of irrigation system, reinstating the use of granaries, increasing the number of extension workers and the consideration for the Government to re-own energy distribution and an end to payment of rent in foreign currency.

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