Florence Nakaayi
2 July 2009
Kampala — PRODUCERS of the banned polythene material want the Government to pay them for the losses they will incur if they close their factories. The producers say they invested billions of shillings to set up the factories.
"The Government should compensate us since it cleared us to do this investment. Some of us have just imported new equipment," said Badru Muwanga, the managing director of Luuka Plastics.
Muwanga was speaking to board members of the Uganda Manufacturers Association who toured his factory in Kawempe yesterday.
According to the new budget, the Government banned the use of polythene bags and hiked taxes on other plastic material to 120%.
Muwanga said they would definitely comply if the Government wants to ban the use of buveera, but take legal action over losses.
Muwanga, whose factory produces 30 tonnes of polythene per month, said he was bound to lose about $3m (sh6b) if the business is closed. The company employs 197 people.
The manufacturers chairman, Kaddu Kiberu, said: "I think the Government took a harsh decision. Issues like investments, employment and taxes were under looked."
Kaddu said the ban and hiking of taxes would encourage smuggling. The board members promised to petition the finance minister over the matter.
On the issue of polythene damaging the environment, Muwanga urged the Government to sensitise the public on the proper disposal of used polythene.
"Recycling plants can re-use the polythene if it is well handled by the consumers."
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