Tax raw exports to boost industries
Dec 02, 2008
EDITOR—There is need to impose a tax on raw exports to boost local industries. For long, President Yoweri Museveni has called for the diversification of the economy, which is key for a developing country like Uganda.
EDITOR—There is need to impose a tax on raw exports to boost local industries. For long, President Yoweri Museveni has called for the diversification of the economy, which is key for a developing country like Uganda.
For many years, most of the non-traditional exports have been exported raw, which was acceptable at the elementary level where Uganda has been.
However, to promote industrialisation, the Government should introduce some carrot–stick policies. Incentives (carrot) have been in place, but exporting raw items could be one of the reasons for the depletion of resources such as timber and fish.
The creation of an export tax (stick) on raw items have many benefits. Besides the creation of a wider tax base when people export processed products, they get higher prices, while creating more jobs locally.
The term ‘processed’ varies from sector to sector. Exporters have associations through which they lobby. These will help determine the percentage that constitutes processed goods.
Henry Rwabugahya
harvesthenry@yahoo.com
For many years, most of the non-traditional exports have been exported raw, which was acceptable at the elementary level where Uganda has been.
However, to promote industrialisation, the Government should introduce some carrot–stick policies. Incentives (carrot) have been in place, but exporting raw items could be one of the reasons for the depletion of resources such as timber and fish.
The creation of an export tax (stick) on raw items have many benefits. Besides the creation of a wider tax base when people export processed products, they get higher prices, while creating more jobs locally.
The term ‘processed’ varies from sector to sector. Exporters have associations through which they lobby. These will help determine the percentage that constitutes processed goods.
Henry Rwabugahya
harvesthenry@yahoo.com