Manufacturing industry decries high taxes

By Oyet Okwera

The manufacturing industry has expressed concern over the high excise duty levied on their businesses which has increased the cost of doing business.

This was revealed by Simpson Birungi, the managing director Movit products during the East African manufacturers' summit held at Speke hotel, Munyonyo.

Birungi wondered why manufacturers in Uganda pay more taxes compared to other member countries in East African Community EAC.

Birungi was speaking to manufacturers' fraternity within the member state of EAC on the non-tariff barriers the industries grapple with.

According to the execise duty taxes within the EAC member states, Rwandan manufactures are charged 5%, Tanzania 6%, Kenya 6%. Ugandan manufactures' are charged 10% for excise which players say is high.

"We call upon government to come to our rescue to enable us trade more competitively within the member states," said Birungi

This summit comes at a time EAC member states ratified the move for integration to encourage free movement of goods and services across the EAC borders.

Top on the agenda was also the lack of standards which manufacturing players say is crippling market potentials for some products.

The manufactures' want the standards body to adopt standards so that they benchmark on for quality product recognition.

Barbra Kansiime, the Uganda National Bureau of Standards (UNBS) publicist observes that most manufacturing firms are certified by the standards body.

However, she said manufacturers should not view lack of standards as a UNBS weakness.

"We normally adopt international standards and ensure that the adopted standards suit our local market. We will definately adot those standards because it is our mandate as the standards body," said Kansiime