Local manufacturers in Uganda are crying foul over the heavy taxation policy imposed by the government, which they say is stifling their growth and competitiveness.
During a meeting with the State Minister of Finance for Investment and Privatization, Evelyn Anite, manufacturers expressed their concerns about the high taxes and operational costs that are making it difficult for them to operate.
“We are being taxed out of business,” said Mr. Robert Kitenda, Head of Communications & Corporate Affairs at Movit Products Limited. “The introduction of the Digital Conformity Mark by the Uganda National Bureau of Standards has increased our certification costs by over 300%. This is a huge burden for us.”
The manufacturers also decried the 10% excise duty imposed on beauty and personal care products, which they say is too high. “We are urging the government to consider a reduction in the excise duty,” Kitenda added.
Minister Anite acknowledged the challenges faced by local manufacturers and promised to work with the private sector to address them. “We support local investors and are committed to resolving these challenges to foster growth in Uganda’s manufacturing sector,” she said.
The minister also commended Movit Products Limited for its significant investment in Uganda and exemplary leadership. “Movit is a shining example of what local investment can achieve. They have created jobs, stimulated economic growth, and demonstrated exceptional leadership,” she said.
However, the manufacturers say that more needs to be done to address the heavy taxation policy. “We need policies that support local manufacturers, reduce costs, and provide space for expansion,” Kitenda said.
The manufacturer urged the government to review the policy and create a more conducive business environment.