Govt waives taxes on generator diesel

Apr 19, 2006

THE Government has agreed to waive taxes on diesel used in generators of 100KVA by manufacturers to enable them continue with work during loadshedding hours, Uganda Manufacturers Association’s (UMA) executive director has said.

By David Muwanga

THE Government has agreed to waive taxes on diesel used in generators of 100KVA by manufacturers to enable them continue with work during loadshedding hours, Uganda Manufacturers Association’s (UMA) executive director has said.

Hillary Obonyo said, “The finance ministry has confirmed that diesel tax will be waived. We have already set up a team to identify manufacturers whose generators qualify for the waiver.”

Obonyo said the team started work on Thursday, April 13.

The team, which includes officials from UMA, Private Sector Foundation and Uganda Revenue Authority, is expected to complete identification of the manufacturers in two weeks.

He said during an interview this week at UMA’s offices in Kampala that 300 companies had registered for the tax waiver.

Obonyo said although UMA has 700 members, not all of them qualify for the waiver because their generators may not be of 100KVA and above.

“But more members of the private sector including schools, institutions of higher learning and all commercial enterprises who are not affiliated to UMA can submit their requests to have taxes waived on diesel used in their generators provided they are of 100KVA and above,” he said.

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