Museveni calls for streamlining of taxes in dairy sector

May 08, 2016

He warned farmers against land fragmentation

President Yoweri Kaguta Museveni has asked the Ministry of Finance to streamline taxes in the Dairy Industry in a move to level the ground for dairy farmers in Uganda to favorably compete with dairy farmers from other countries. 

Museveni made the remarks on Saturday evening in a meeting with Kiruhura dairy farmers at his country home in Rwakitura.

"I don't support taxing 18% per litre but we can agree to tax the income earned on the milk," he said.

Museveni also warned farmers against land fragmentation and encouraged them to use rotational farming or paddock system so that their cattle can have pasture to feed on throughout the year.

"You must learn to grow grass like Hyperleria loofer, Dradelia, Prolyce Giana, Temla and grow sorghum and maize as cattle food to improve the quality and quantity of our milk," he said.

Museveni said that milk production has been able to increase because people stopped nomadic farming, a practice that was spreading diseases among the animals. He proposed that farmers form an association that will systematically deal with all issues affecting dairy farmers in Uganda.

He observed that in 1986 Uganda used to produce only 200 million litres of milk but production has since increased to 2 billion litres per annum.

"You should form an association of knowledgeable dairy farmers who can compare Uganda's dairy Industry with that of other countries in the world," he counseled.

The dairy farmers requested the President to construct an animal feeds factory, provide their cooperative societies with tractors and machines that cut silage to ease their work and to speed up irrigation farming which will improve milk production.

The meeting was attended by the Minister for Agriculture Tress Bucyanayandi, the Minister for Livestock Bright Rwamirama and the Commissioner General Uganda Revenue Authority Doris Akol.

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