Why Uganda Has Banned The Export of Raw Materials
The Ministry of Trade, Industry and Cooperatives has banned exportation of raw materials starting in the 2021 financial year to encourage adding of value on all raw materials before exporting them. Minister for Trade, Harriet Ntabazi, said 69% of raw materials in the country are exported hence causing revenue loss, adding that the move will improve the manufacturing sector. The trade ministry has also negotiated a U.S.$29 million loan from development partners, and sourced another U.S.$29 million given to Uganda Development Bank this financial year, to give to traders.
The minister said that increased taxation has affected traders, yet the current Covid-19 lockdown has had adverse negative impacts on them. The minister condemned the increase of taxes on garments from 25% to 33% by the finance ministry, adding that this affects consumption both internally and externally.
InFocus
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Growing concern amongst the business community about Covid-19 lockdown measures were addressed at the post East African Community tax and budget dialogue meeting for 2021/2022, held in Kampala, where participants suggested ways of easing trade.
An official said EAC countries still operate dissimilar tax policies which defeats the essence of the EAC Customs Union, that provides for the Common External Tariff (CET) as one of its pillars. They added that gaps in the implementation of CET
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Led by Cabinet Secretary for Trade and Industry Betty Maina, the Kenyan officials visited Uganda from April 11, 2021 to discuss non-tariff barriers (NTBs) affecting trade between the two countries and verify the Ugandan sugar industry to ensure that exports of the product into Kenya are wholly produced in Uganda. This had led the two countries to reach an agreement to resolve the persistent trade dispute between them. Under the new framework of trade co-operation, Kenya will import up to 90,000
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(file photo).
