‘Govt ignored UMA input in EAC policy’

Dec 22, 2009

THE Uganda Manufacturers Association (UMA) is unhappy that their input into policy issues presented to the East African Community were overlooked and not presented by the Government to the EAC Secretariat.

By David Mugabe

THE Uganda Manufacturers Association (UMA) is unhappy that their input into policy issues presented to the East African Community were overlooked and not presented by the Government to the EAC Secretariat.

Among UMA’s latest concern presented during a meeting with Eriya Kategaya, the EAC affairs minister, is the tax on raw materials and industrial input that will come into effect after the December 31 expiry of the transitional period of the customs union and the commencement of a fully-fledged union.

“We should not be paying 10% for raw materials in order to remain competitive,” said Kaddu Kiberu, the UMA chairman.

Kiberu said UMA wants the Government to drum up their case to the secretariat to allow for an extension on Articles 12 (2) of the EAC Protocol.

The Article guaranteed 94 local companies to be exempted from the Common External Tariffs for 135 industrial inputs imported from third world countries outside EAC.

This according to UMA will allow the 94 firms that qualify under this arrangement to continue importing raw materials at 0% levy instead of the 10% under the EAC Common External Tariff.

“What we are asking is not too big for Kenya. Kenya exports more than 70% of its goods to Uganda and they should listen.

“If we do not understand this issue of raw materials and inputs, it will affect us,” argued Kiberu.

UMA is also worried that if their position on taxes on raw materials is not considered, more expensive and low “quality inputs (primarily from Kenya)” will substitute the high quality inputs they have been sourcing from outside EAC.

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