Paper importers cry foul
Aug 11, 2005
TRANSPAPER Industries, wants the finance ministry to scrap off the 25% levy on small and medium industries importing paper raw materials.
By Felix Oketcho
TRANSPAPER Industries, wants the finance ministry to scrap off the 25% levy on small and medium industries importing paper raw materials.
Srinivasa Reddy, the operations manager, said on Tuesday that the tax effected in February, following the adoption of East Africa Customs Union, was crippling the printing industry.
“After the implementation of Common External Tariff, small and medium printers are facing acute crisis in procuring paper raw materials,†Reddy said in an interview on Tuesday at the firm’s offices on Nkrumah Road.
“The present policy only allows big printers to import papers at zero duty while paper merchants are being taxed at 25% duty,†he said.
Reddy said the levy made small operators uncompetitive.
“Some of our members are waiting for up to two months to collect their procured paper materials,†he said.
Reddy warned of firm closures if the Government failed to revise the duty.
TRANSPAPER Industries, wants the finance ministry to scrap off the 25% levy on small and medium industries importing paper raw materials.
Srinivasa Reddy, the operations manager, said on Tuesday that the tax effected in February, following the adoption of East Africa Customs Union, was crippling the printing industry.
“After the implementation of Common External Tariff, small and medium printers are facing acute crisis in procuring paper raw materials,†Reddy said in an interview on Tuesday at the firm’s offices on Nkrumah Road.
“The present policy only allows big printers to import papers at zero duty while paper merchants are being taxed at 25% duty,†he said.
Reddy said the levy made small operators uncompetitive.
“Some of our members are waiting for up to two months to collect their procured paper materials,†he said.
Reddy warned of firm closures if the Government failed to revise the duty.