The Out grower farmers supplying sugarcane to Kakira Sugar Ltd Monday, 2nd July 2018 suspended supply of sugarcane to the factory in angry protest against the application of 1% withholding tax on agricultural supplies.
In a press statement dated July2, 2018, Christian Vincke, the General Manager at Kakira Sugar Limited says withholding tax of 1% for agricultural supplies is a requirement by law, but urges farmers to suspend the strike.
During the reading of 2018-19 budget, the Ministry of Finance, Planning and
Economic Development announced a Withholding Tax on payments for agricultural supplies at a rate of 1% on a gross payment for agricultural supplies in excess of one million shillings.
“Kakira Sugar Limited is only acting as an Lawful Agent for collection of the 1% WHT and remitting it to the Uganda Revenue Authority.
Therefore, we are informed that the Chairman of the Busoga Sugarcane Growers Association has planned a discussion with Ministry officials to discuss the concerns of farmers,” Vincke said, adding: “Management of Kakira Sugar Ltd respectfully calls upon all farmers to suspend the protest and deliver sugarcane to the factory. Those farmers who are willing to supply sugarcane should be allowed to do so.
We hope that the Ministry of Finance, Planning and Economic Development will be able to listen to the concerns of the farmers and agree with them on a win-win solution.”