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Uganda: Manufacturers Want Tax Waiver On Diesel Retained
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New Vision (Kampala)
24 July 2008
Posted to the web 25 July 2008
Mary Karugaba
Kampala
Manufacturers have complained that the rampant electricity load shedding is forcing them out of business.
Appearing before Parliament's trade and industry committee yesterday, the manufacturers appealed to the Government to maintain the tax waiver on diesel that they use in generators of 100kv and above, until the problem of electricity shortage is addressed.
The chairman of the Uganda Manufacturers Association, James Kalibbala, told the MPs that the Government and the manufacturers had agreed to reinstate the taxes after Mutundwe and Namanve power plants were connected to the main grid.
"We were promised that the two power plants would be connected to the grid by June 2008. Unfortunately, before the problems could be solved, the finance ministry had already reinstated the tax. We feel the exemption should continue until the power supply stabilises," he said.
The association's executive director, Gideon Gadagawa, said some companies were operating with only three machines out of 30 due to the power problem.
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"We request that a policy be put to allow all buildings to use solar energy, so that scarce electricity is left to us the manufacturers," he said.
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