Emmanuel Odongo, the General Manager Jubico Industries Limited described it as “unfair” for a Ugandan who must acquire an export permitted to buy raw materials from farmers at the same price with foreigners.
Uganda Manufacturer’s Association (UMA) has appealed to Uganda Revenue Authority (URA) to regulate foreign traders who are
currently buying produce directly from farmers.
On Thursday, UMA had an engagement with URA officials in
Lira City where the manufacturers called on government to regulate traders from
neighboring countries like Kenya and South Sudan from buying production
materials from farmers.
Northern Uganda is significantly the highest producer of
grains such as maize, millet, and sorghum in Uganda, and currently, it is a
common practice to find traders from neighboring counties especially Kenya going door to door buying grains from farmers.
The produce especially maize grain is said to be taken back to
Kenya for processing into fine flour which is exported back for sale in
Uganda. The manufacturers say this action leaves farmers with nothing and rips
businessmen off profits which they could have made from manufacturing the goods at home.
Emmanuel Odongo, the General Manager Jubico Industries
Limited described it as “unfair” for a Ugandan who must acquire an export
permitted to buy raw materials from farmers at the same price with
foreigners.
//Cue in: “We are supposed …
Cue out: … businesses also grow.”//
On the other hand, Odongo wants fair administration of taxes,
urging URA to strengthen tax education to ensure proper compliance.
//Cue in: “The same product…
Cue out: … of paying tax.”//
A maize miller who spoke on condition of anonymity argued
that most of these neighboring countries do not allow foreigners to buy raw
materials directly from their farmers like it is the case in Uganda.
“In Kenya, you cannot just walk to a farmer, buy their
produce and come back to Uganda like they do here, that side everything is
restricted. You have seen them blocking us from even taking our already
processed milk for sale over there.” She said.
Patrick Komakech from the Policy, Research and Advocacy
department at UMA acknowledge the challenge saying the Association is working
at finding a permanent solution to it.
//Cue in: “Currently we have…
Cue out: ...the appropriate manner.”//
He however, blamed the local traders for operating
individually instead of working together speaking in the same voice.
//Cue in: “If at all…
Cue out: ...hard to represent.”//
Meanwhile Yasin Luwaga, the URA Regional Supervisor for
custom services East Nile says such traders may not be going through un- gazette
place not monitored by the Authority.
“As URA we might not have much to do about that probably they
are not even going through gazette places because we are sure whoever goes
through gazette places has to go through our custom processes and procedures. For
people who are for example, exporting maize there is a requirement that one
should have an export permit and that is what we enforce at customs, you don’t
have it, no crossing. That is the simple rule.”
He was however, quick to note that manufacturers cannot be
restricted to move within the East African Community.
//Cue in: “Whichever country is…
Cue out: … they can do.”//
He called on the traders and manufacturers to always comply
with regulations and pay taxes to avoid penalities.
