Manufacturers claim maize grain is taken to Kenya for processing into fine flour which is exported back for sale in Uganda
Uganda Manufacturers 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.
On the other hand, Odongo wants fair administration of taxes, urging URA to strengthen tax education to ensure proper compliance.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.
He however, blamed the local traders for operating individually instead of working together speaking in the same voice.
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.
He called on the traders and manufacturers to always comply with regulations and pay taxes to avoid penalities.
-URN
