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Uganda: Packaging Firm Lays Off 200
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New Vision (Kampala)
13 May 2008
Posted to the web 14 May 2008
Kampala
ONE of the leading packaging material manufacturers has laid off 200 workers due to a fall in production to 20%, a top official has said. Gideon Bagadawa, the Uganda Manufacturers Association chief, who declined to name the company, attributed the lay-off to imported polythene bags and other packaging materials from Kenya.
"Kenyans are producing polythene products that are below the Ugandan set standard (of not below 30 microns). Those below are very cheap to produce because an investor needs only 33% of the raw materials," Bagadawa said.
He said the situation was worsened by the high taxes imposed on the manufacturers of polythene products.
"The 120% excise duty is slowly killing businesses and has resulted into job losses.
"This will worsen the unemployment problem," Bagadawa argued.
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."We are not only concerned about the investors and employees losing jobs but also the protection of the environment against disposal of polythene bags."
Bagadawa said this was the reason the association have signed a memorandum of understanding with the Kampala City Traders Association and also partnered with National Environment Management Authority to sensitise the public on how to dispose off the bags.
"However, we also ask the Government to put in place a waste management policy that would regulate the use of polythene bags and punish offenders like people who throw mineral water bottles everywhere."
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