PSFU Engages Parliament on Tax Bills
The Private Sector Foundation Uganda has presented a position statement on the Tax Bills Amendment before the Parliamentary Committee on Finance Planning, and Economic Development to be considered in their report
The paper composed of proposals which the private sector believes, once adopted and implemented, will make a meaningful contribution towards stimulating the economy to create more work opportunities for young people in Uganda.
One of the companies in the alcohol sector innovated and set up Chibuku factory which unfortunately closed in 2018 over unprogressive excise duty on opaque beer which rendered it uncompetitive with other local brews such as tonto, ajono, mulamba, malwa etc. due to this, annual VAT worth UGX5 billion was lost, average of 3.6 million Kgs of maize annually locally, over 1,000 farmers supplying maize lost market, 6,000 direct and indirect jobs linked factory were lost.
In the paper, PSFU proposed to reduce opaque beer excise rate from UGX. 230 or 30% and now to UGX. 150 or 12% in the Excise Bill 2022 is not optimum for the business to operate again.
The paper has been developed with consultations from the wider membership of the private sector including financial institutions, investment clubs, soft drinks and beverage companies, alcohol association, manufacturers, and traders.