Uganda loses sh70b in raw hides
May 13, 2004
UGANDA earns $9m (sh18b) annually instead of $35m (sh70b) because 90% of the hides and skins are exported in raw form.
By David Muwanga
UGANDA earns $9m (sh18b) annually instead of $35m (sh70b) because 90% of the hides and skins are exported in raw form.
“Uganda’s annual production of hides and skins is estimated at one million bovine hides, two million goat and sheep skins. Over 90% of this is exported in raw form,†a proposal by Uganda Leather Industries Association (ULIA) said.
It said exporting processed leather products would fetch Uganda $35m (sh70b).
The proposals were recently presented to the agriculture and finance ministries, Uganda Investment Authority and Uganda Manufacturers Association.
ULIA criticised the Government for introducing the 15% levy on raw hides and skins exports without giving local investors a time frame.
“The tax was good because we needed to discourage export of raw hides. However, it should have been implemented in phases,†ULIA said.
They proposed that a 50% tax should be imposed on raw hides this year, 60% in 2005 and 2006 and a total ban imposed from 2007. They said semi-processed hides should pay no taxes until 2008.
Ends
UGANDA earns $9m (sh18b) annually instead of $35m (sh70b) because 90% of the hides and skins are exported in raw form.
“Uganda’s annual production of hides and skins is estimated at one million bovine hides, two million goat and sheep skins. Over 90% of this is exported in raw form,†a proposal by Uganda Leather Industries Association (ULIA) said.
It said exporting processed leather products would fetch Uganda $35m (sh70b).
The proposals were recently presented to the agriculture and finance ministries, Uganda Investment Authority and Uganda Manufacturers Association.
ULIA criticised the Government for introducing the 15% levy on raw hides and skins exports without giving local investors a time frame.
“The tax was good because we needed to discourage export of raw hides. However, it should have been implemented in phases,†ULIA said.
They proposed that a 50% tax should be imposed on raw hides this year, 60% in 2005 and 2006 and a total ban imposed from 2007. They said semi-processed hides should pay no taxes until 2008.
Ends