Tax on imported printing materials scrapped
Oct 18, 2005
Government through the Uganda Revenue Authority (URA) has lifted taxes on imported printing materials including paper used for educational purposes.
By Ricks Kayizzi THE Government through the Uganda Revenue Authority (URA) has lifted taxes on imported printing materials including paper used for educational purposes.
In a heated meeting between URA officials and the Uganda Printers Association (UPA) recently, the two parties agreed that all paper for educational purposes is exempted from tax provided it is kept in a bonded warehouse and the printer has evidence of a tender to supply the materials to a local institution.
“This paper has to be labelled “For export only,†and local printers have to show us evidence that they have been contracted to print and supply educational material for any local firm,†Moses Kagwa, URA’s commissioner for tax policy, said.
Earlier, local printers, importers and distributors of paper had vowed to stop paying tax following the introduction of a 25% tariff under the East African Customs Union late last year. Previously, the importers were paying 7% import duty.
Stephen Wakida, UPA’s vice chairman, said with the 7% tariff, 70 grammes of bond paper were going for sh45,000, but after the 25% levy, the price increased to sh56,000. Wakida said at the Uganda Manufacturers Association’s Conference Hall that the printers had learnt that the introduction of 25% duty was due to lobbying from Pan African Paper Mills in Kenya.
He said three paper importing firms had collapsed since the new tax.
Ends
In a heated meeting between URA officials and the Uganda Printers Association (UPA) recently, the two parties agreed that all paper for educational purposes is exempted from tax provided it is kept in a bonded warehouse and the printer has evidence of a tender to supply the materials to a local institution.
“This paper has to be labelled “For export only,†and local printers have to show us evidence that they have been contracted to print and supply educational material for any local firm,†Moses Kagwa, URA’s commissioner for tax policy, said.
Earlier, local printers, importers and distributors of paper had vowed to stop paying tax following the introduction of a 25% tariff under the East African Customs Union late last year. Previously, the importers were paying 7% import duty.
Stephen Wakida, UPA’s vice chairman, said with the 7% tariff, 70 grammes of bond paper were going for sh45,000, but after the 25% levy, the price increased to sh56,000. Wakida said at the Uganda Manufacturers Association’s Conference Hall that the printers had learnt that the introduction of 25% duty was due to lobbying from Pan African Paper Mills in Kenya.
He said three paper importing firms had collapsed since the new tax.
Ends