AGRICULTURAL SECTOR

Description                                                    Tax incentive

Hoes

A hoe is a long-handled gardening tool with a thin metal blade, used mainly for weeding and breaking up soil.

•        VAT Exempted when imported by dealers under the VAT Act.

•        Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Ploughs, Harrows, seeders, planters and transplanters, manure spreaders and fertilizer distributors

•        VAT Exempted when imported by dealers under the VAT Act.

•        Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Agricultural sprayers

•        VAT Exempted when imported by dealers under the VAT Act.

•        Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Fertilizers

A fertilizer is any material of natural or synthetic origin (other than liming materials) that is applied to soils or to plant tissues (usually leaves) to supply one or more plant nutrients essential to the growth of plants

•                       Exempted from all taxes under the 5th Schedule of the East African

Community Customs Management

Act, 2004 upon approval by the Ministry of Agriculture, Animal Industry and Fisheries.

Refrigerated Trucks

•           Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Agricultural chemicals (fungicides and pesticides)

•        VAT Exempted when imported by dealers under the VAT Act.

•        Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Veterinary Chemicals (Acaricides)

•  

VAT Exempted when imported by dealers under the VAT Act.

•  

Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Agricultural Tractors

•  

VAT Exempted when imported by dealers under the VAT Act.

•  

Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Aluminum Cans for the dairy industry

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Heat Insulated Milk tanks for the dairy industry

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Insulated tankers

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Imported inputs and implements by persons engaged in horticulture, agriculture or floriculture and aquaculture sector e.g. hatching eggs, day old chicks, semen, fish eggs, Fry/ fingerling (young fish), seeds, green houses/ materials used in construction of green houses, flower cuttings, incubators,

hatcheries etc.

•  

Exempted from all taxes when imported by persons engaged in horticulture, agriculture, aquaculture or floriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Cold Rooms

A cold room in which a low temperature is maintained (as for refrigeration)

•  

Import Duty is 0% in accordance with the EAC CET. Helps on post-harvest management and cold chain storage of agricultural products such beef, chicken, fish etc

Poultry parent stock imported by persons engaged in poultry farming.

A broiler and layer breeder farms raise parent stock which produce fertilized eggs.

A broiler/layer hatching egg is never sold in shops and is not meant for human consumption but for hatching into day old chicks.

•  

•  

VAT Exempted when imported by dealers under the VAT Act. Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Seeds for sowing, spores and cut plants

A seed is an embryonic plant enclosed in a protective outer covering.

•  

Exempted from all taxes under fifth schedule of the East African Community Customs Management Act, 2004 upon approval by Ministry of Agriculture Animal Industry and Fisheries.

Breeding animals

Breeding stock is a group of animals used for the purpose of planned breeding.

•  

•  

VAT Exempted when imported by dealers under the VAT Act. Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Preparations for cleaning Diary apparatus

Example PFANZITE POWDER DAIRY DETERGENT.

Pfanzite is a highly chlorinated, powdered manual cleaner designed especially for cleaning bulk tanks, the Surge bucket milker and utensils.

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Fish, Crustaceans and Molluscs, fresh (dead or live) chilled or frozen caught and landed by canoes or vessels registered and based in a

Partner State

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Feeds for Poultry and Livestock Poultry

Feed is food for farm poultry, including chickens, ducks, geese and other domestic birds. Modern feeds for poultry consist largely of grain, protein supplements such as soybean oil, meal, mineral supplements, and vitamin supplements

•  

•  

VAT Exempted when imported by dealers under the VAT Act. Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.

Machinery for processing dairy products

•  

VAT Exempted when imported by dealers under the VAT Act.

•  

Import duty is 0%, under East African Community Common External Tariff VAT Exempted.

Packing material of any kind designed for packaging goods for export

•  

Exempted from all taxes when imported with an intention of packaging goods meant for export.

The supply of irrigation works, sprinklers and ready to use drip lines

•  

•  

VAT Exempted when imported by dealers under the VAT ACT. Exempted from all taxes when imported by persons engaged in agriculture under the 5th schedule of the East African Community Customs

Management Act, 2004

MANUFACTURING SECTOR

Description                                                    Tax incentive

Raw materials used in production of goods meant for export.

•        Duty draw back i.e. customs refunds of all or part of any import duty paid on material inputs imported to produce goods for export or used in a manner for a purpose prescribed as condition for granting duty draw back.

Plant, machinery, equipment and raw materials used in production of goods for export.

•        Manufacturing under bond facility. A facility extended to manufacturers to import plant, machinery, equipment and raw materials tax free, for exclusive use in the manufacture of goods for export.

White refined sugar for

Industrial use. The industrial sugars category includes sweeteners that service food and confectionary manufacturers, as well as the catering, baking, pharmaceutical and beverage industries

•        Duty remission to 10% on imported white refined industrial sugar for industrial use.

Paper for use in the manufacture of exercise books and textbooks. An exercise book or composition book is a notebook that is used in schools to copy down school work and notes.

•        Imported at import duty rate of 0% under duty remission scheme for one year.

Stranded wire used in manufacture of tyres.

A stranded wire as opposed to solid wire is a composite of a bundle of small gauge wires wrapped in a particular pattern inside insulation to make a larger conductor.

•  

Duty remission at 0% for manufacturers of motor vehicle tyres for one year.

Treads for cold retreading used in retreading of tyres.

The tread of a tyre or track refers to the rubber on its circumference that contacts the road or the ground.

Retread, also known as “recap,” or a “remold” is a re-manufacturing process for tyres that replace the tread on worn tyres.

•  

Duty remission to 0% for

manufacturers of motor vehicle tyres under the duty remission scheme in accordance with section 140 of the East African            Community Customs Management Act, 2004.

Raw materials for manufacture of aluminium cans for the dairy industry.

Aluminium can is a bucket, pail, or other container made of aluminium that is used for holding or carrying liquid, food, beverage etc.

•  

Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled (Complete Knocked Down) motor cycle kits imported by approved local assemblers of motor cycles.

•  

Imported at import duty rate of 10% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled (Complete Knocked Down) bicycle kits imported by approved local assemblers of bicycles.

•  

Imported at import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Raw materials and inputs used in the assembly of transformers and switch gear.

•  

Imported at import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Raw materials for manufacture of sanitary towels and tampons

•  

Remission of import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs used for the production of solar panels

•  

Remission of import duty rate 0% under duty remission of scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Component parts and inputs for the assemblers of refrigerators and freezers.

•  

Remission of import duty rate of 10% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs and raw materials to use in the manufacture of food supplements

for infants and nutrient deficient persons

•  

Remission of import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Scrap batteries for manufacture of lead batteries

•  

Remission of import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs used in the production of gas cylinders imported by manufacturers of such cylinders

•  

.

Duty remission to 0%under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for the manufacture of dry cell batteries.

•  

Duty remission to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for manufacture of matches and match boxes.

•  

Duty remission to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for the manufacture of deep cycle batteries

•  

Duty remission to 0%under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Materials for manufacture of mosquito nets

•  

Exempted from all taxes under the 5th schedule of the East African

Community Customs Management Act,

2004.

Inputs for use in the manufacture of medical diagnostic kits imported by manufacturers of medical diagnostic kits as approved by a

Director medical services

•  

Exempted from all taxes under the 5th schedule of the East African

Community Customs Management Act, 2004.

Packing materials and raw materials for the manufacture of medicaments

•  

Exempted from all taxes under the 5th schedule of the East African

Community Customs Management Act, 2004.

Iron and steel products for manufacture of automobile leaf springs, bolts and nuts

•  

Duty remission on inputs to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Trigger spray and lotion pumps for the manufacture of cosmetic containers

•  

Duty remission on inputs to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Noodles for the manufacture of toilet soap

•  

Duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Umbrella heads for roofing nails

•  

Import duty remitted from 25% to 10% for the manufacture of roofing nails.

Glucose Syrup

•  

Import duty is applicable at a rate of 0% for one year.

Odiferous mixtures of a kind used as raw materials in food and drink industries

•  

Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for the manufacture of toothbrushes

•  

Granted duty remission at 0% on inputs for the manufacture of tooth brushes under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Nylon yarns for the manufacture of fishing nets.

•  

Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs imported by a manufacturer for the use in the manufacture of agricultural equipment.

•  

Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs used in the manufacture of pesticides, fungicides, insecticides and acaricides as approved by the Ministry of Agriculture

•  

Granted duty remission at 0% on inputs used in the manufacture of pesticides, fungicides, insecticides and acaricides as approved by the Ministry of Agriculture.

Inputs used in the manufacture of energy stoves.

•  

Granted duty remission at 0% on inputs used in the manufacture of energy saving stoves.

Roofing tiles coated with acrylic paint and the weather side coated with natural sand granules

•  

Inputs for the manufacture of roofing tiles to be imported at a duty rate of 0% for one year.

•  

Inputs for the manufacture Roofing tiles coated with acrylic paint and the weather side coated with natural sand granules to be imported at a duty of 0% for one year.

Jacquard material for making spring mattresses (printed with Logo)

•  

Import duty applicable at a rate of 10% for one year instead of 25%.

Weave fabrics of polyester staple fibre Woven Grey Fabric of higher (finer) yarn counts for wet.

•  

Import duty applicable at a rate of 10% instead of 25% for one year.

Poly Cotton Material for making mattresses

•  

Import duty applicable at a rate of 10% for one year. To support the textile sector by increasing availability of these materials.

Catalytic preparations for the manufacture of foam and spring mattresses

•        Granted remission of duty from 10% to apply a duty rate of 0% for one year for the manufacture of foam and spring mattresses.

Other springs and leaves for the manufacture of foam and spring mattresses

•        Granted remission of duty from 25% to 10% for one year for the manufacturers of foam and spring mattresses

Poly Vinyl Alcohol

•  

Import duty applicable at a rate of 0% instead of 10%.

Wheat Grain

•  

Import duty is applicable at a rate of 10% instead of 35% for one year.

Barley

•  

Import duty is applicable at a rate of 10% instead of 25% for one year.

Aerosal cans

•  

Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Organic surface-active agents (Anionic) (LABSA)

•  

Duty remission to 0% instead of 10% for one year for manufacturers of detergents and liquid soaps under the duty remission scheme, in accordance with section 140 of the East African Community Customs Management Act, 2004.

Organic surface-active agents (Cationic)

•  

Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Textile garments coated with gum for direct use in the manufacture of books

•  

Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Duplex boards

•  

Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for assembly of ships

•  

Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for assemblers of equipment specially designed for use by disabled, blind and physically handicapped persons

•  

Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Inputs for manufacture of filters

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Groats and meal of wheat

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled speakers (CKD)inputs for assembly of speakers

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled (CKD) hot water kettles- inputs for assembly of hot water kettles

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled (CKD) DVD players – inputs for assembly of DVD players

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled flat iron (CKD)-inputs for assembly of flat iron

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled (CKD) blenders – inputs for assembly of blenders

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled (CKD) LED, CFL bulbs – inputs for assembly of LED

& CFL bulb

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled floor, table and wall fans

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Unassembled Cookers

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Listed inputs for the manufacture of furniture

•  

Granted duty remission rate of 0% and 10% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Steel Blanks for Spoons and forks

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Granted duty remission rate to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Stranded wire, ropes and cables for the manufacture of toughened and laminated glass

•  

Granted duty remission rate to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials. Of poly (vinyl butyral) for the manufacture of Toughened and laminated glass.

•  

Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Non-wired glass for the manufacture of Toughened and laminated glass.

•  

Granted duty remission of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non- aqueous medium for the manufacture of decorative

aluminium panels

•  

Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Aluminium plates, sheets and strip of a thickness exceeding 0.2 mm of aluminium alloy for the manufacture of decorative aluminium panels

•  

Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Listed inputs for the manufacture of baby diapers

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Acrylic polymers for manufacture of paints

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004.

Listed inputs for the manufacture of textiles (garments)

•  

Granted duty remission to 0% and 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004

Listed inputs for the manufacture of footwear (shoes)

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Inputs for the manufacture of edible salt of sub-heading 2501.00.00

•  

Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Inputs for the assembly/ manufacture of mobile phones

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Parts of chains for assemblers of chains for motorcycles, bicycles and industrial machinery

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

•        Grant Uganda a remission of

duty to apply a duty rate of 0%

Valves and their corresponding

for one year.

component parts used for the

manufacture of motorcycle tubes

These    are     raw    materials    for the

manufacture of motorcycle inner tubes.

•        Grant Uganda a remission of duty to apply a duty rate of 0% for one year.

Brake linings and pads,

These are raw materials for manufacture of motorcycle brake shoes.

Brakes and servo-brakes; parts thereof;

Other Adhesive Glues

High tensile galvanized wire

•  

Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community

Customs Management Act, 2004

Aluminium wire, not alloyed: — Of which the maximum cross- sectional dimension exceeds 7 mm

•        Granted a remission of duty from 10% to 0% for one year to only cable manufacturers

Wires of alloyed steel

•        Stay of application of the EAC CET rate of 10% and apply a rate of 0% up to 30 June 2023.

Other Zinc coated coils

•        Grant Uganda a remission of duty to 0% on Galvanised coils of a thickness of 2.5mm and above for one year.

To         support        the local manufacture of guard rails

Listed Packaging materials and plastic materials for coffee

•  

Granted a remission of duty to apply a duty rate of a 0% instead of 10%, 10% instead of 25% on packaging material used by domestic processors of coffee, for one year

Listed equipment for polishing and Heating gemstones

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Active yeasts

•  

Granted duty remission to 25% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Petroleum jelly

•  

Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Polyurethane resins

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Uncoated/Unbleached Kraft Liner paperboard, in rolls or sheets, Glues based on starch

Other plates, films, sheets of plastic, paper or paper board labels whether printed or not

•  

Granted duty remission from 35% and 10%, to 10% and 0% respectively for one year for manufacturers of paper bags, corrugated boxes for exporting products, raw materials used in the manufacture of surgical and examination medical gloves under the duty remission scheme in accordance with section 140 of the East African                       Community                        Customs Management Act, 2004

Unbleached sack Kraft paper in rolls or sheets

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Paper and paperboard coated, impregnated or covered with plastics (excluding adhesives)

•  

Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the

East African Community Customs Management Act, 2004

Other plates, sheets, film, foil and strip, of plastic — unprinted

•        Grant Uganda a remission of duty from 10% to 0% for one year. This is an input material for the label printing sector

Mechanically Deboned Chicken Paste (MDM)

•        Granted remission of duty from 60% to 35% for one year on MDM in accordance with section 140 of the East African Community Customs Management Act, 2004.

Greaseproof papers; and Other, Other Kraft paper and paperboard

•        Grant Uganda a remission of duty from 10% to 0% for one year, packaging material for manufactured cheese in accordance with section 140 of the East African Community Customs Management Act, 2004.

Compositing dry toilets

•        Grant Uganda a stay of the application of EAC CET rate of 25% and apply a duty rate of 10% on compositing dry toilets, for one year.

Various goods entering export processing zone or Freeport strictly for manufacturing of goods for export.

“Export processing zone” means a designated part of Customs territory where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside Customs territory but are restricted by controlled access

•  

Goods entering an export processing zone or a freeport shall be exempt from duty in accordance with the East African Community Customs

Management Act

Plant and machinery

•  

VAT deferment where payment of VAT at importation on specified imports is postponed to a future date. The cost of the plant and machinery should be at least $22,500 and above.

Industrial replacement spare parts

•           A spare part is a duplicate part to replace a lost or damaged part of a machine.

•           Parts should be imported as replacement parts used exclusively on industrial machinery classified in Chapters 84 and 85 of the EAC Common External Tariff

•           Should be imported by registered manufacturers

•           Should not be for resale or any other commercial purpose other than for replacement of worn out or obsolete parts of industrial machines subject to such conditions as the commissioner

may impose

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Containers and Pallets used for packaging.

Containers, including boxes, tins, bottles, jars and other packages in which any goods not liable to ad valorem duty are packed and imported being ordinary trade packages for the goods contained therein

Containers specially designed and equipped for carriage by any mode of transport

Imported containers which the commissioner is satisfied on the recommendation of

the director veterinary services that it is specially designed for storing semen for artificial insemination

Any other packing material of any kind designed for packing goods for export

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

Pallets and pre-packing slings designed for packaging goods for export

•  

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004.

TRANSPORT SECTOR

Description                                                    Tax incentive

1.

2.

3.

4.

5.

6.

7.

8.

free import of aircrafts and aft accessories: These include Aircrafts

Aircraft engine, parts and accessories

Air navigation instruments Lighting

Radio and radar apparatus Equipment for Servicing and maintenance of air crafts Ground signs stairways for boarding aircraft

Catering stores e.g. luncheon boxes, cardboard trays, paper plates, paper napkins, lubricants; staff uniforms; calendars, diaries and pens as promotional

materials” for use in airline.

•        Exempted from all taxes under the fifth schedule of the East African

Community Customs Management Act, 2004

1.

2.

Specialized aircraft loading and unloading equipment

Apron buses essentially for airports

•        Exempted from all taxes under the fifth schedule of the East African

Community Customs Management Act, 2004

Commercial Vehicles of gross weight 20 tonnes and above.

•        Free of import duty for one year, VAT is payable

Road Tractors for semi – trailers.

•        Free of import duty for one year, VAT is payable.

Goods carrying vehicle with gross vehicle weight exceeding 5 tonnes but not exceeding 20 tonnes

•        Import duty is 10% instead of 25% for one year

Ships and other vessels includes the following

1.         Passenger and cargo vessels of all kinds of twenty five tonnage net weight or more

2.         Cable ships, floating factories, whale catching vessels, trawlers and other commercial fishing vessels EXCEPT sport fishing vessels

3.         Weather ships, hopper barges, lighters and pontoons (being flat decked vessels used for transportation of persons or goods)

4.         Ferry boats, parts and accessories EXCEPT batteries and sparking plugs

•    E xempted from all taxes under the fifth

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

Battery operated vehicles for use in hotels, hospitals and airports.

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct,20 0 4

Motorvehicles specially designed for refuse/ garbage collection and disposal imported or purchased by local authorities / persons contracted by local authorities to collect refuse/garbage.

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct,20 0 4

OIL AND GAS SECTOR

Description                                                    Tax incentive

Equipment for use in the oil and gas sector. These include: Equipment and inputs and goods for direct and exclusive use in oil, gas or geothermal exploration and development EXCEPT motor vehicles.

•    E xempted of all taxes under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct upon recommendation by a competent authority

EDUCATION AND SPORTS SECTOR

Description                                                    Tax incentive

Educational materials. Annex

D to the Florence Agreement Scientific instruments or apparatus, intended exclusively for educational purposes or pure scientific research, provided:

•           That such scientific instruments or apparatus are consigned to public or private scientific or educational institutions approved by the competent authorities of the importing country for the purpose of duty-free entry of these types of articles, and used under the control and responsibility of these institutions;

•           That instruments or apparatus of equivalent scientific value are not being manufactured in the country of importation.

Please take note that this is an excerpt of the main text. You are encouraged to look at the whole text for the relevant provision applicable to the goods you have imported.

•     A ll A pproved educational articles and materials as specified in the F lorence ag reement are tax exempt under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct.

One motor vehicle for rally driver and spare parts.

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

One Motor cycle for racing/rally

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

One Bicycle for racing/ rally

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

Exercise books

•  

E xempted from VAT under the VAT A ct if

locally produced

•  

Imported exercise books attact VAT

Mathematical sets & geometry sets used in educational services

•  

E xempted from VAT under the VAT A ct.

•  

Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

Woodworking machines

•  

E xempted from VAT under the VAT A ct.

•  

Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

Welding machines

•  

E xempted from VAT under the VAT A ct.

•  

Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

Sewing machines

•  

E xempted from VAT under the VAT Act

•  

Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

Crayons, coloured pencils, lead pencils, rulers, erasers, stencils, technical drawing sets, educational computer tablets, educational computer applications or laboratory chemicals for teaching science subjects used in educational services.

•  

E xempted from VAT under the VAT A ct.

Textbooks

•  

E xempted from VAT under the VAT A ct.

•  

Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

Bible

•           E xempted from VAT under the VAT A ct.

•           Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

Qu’rans

•           E xempted from VAT under the VAT A ct.

•           Import duty is 0 % under E ast A frican C ommunity C ommon E xternal Tariff .

ENERGY SECTOR

Description                                                    Tax incentive

Specialized equipment for development and generation of solar and wind energy, including accessories and deep cycle batteries which use and/ or store power.

These include: • Deep cycle batteries

•           Solar panels

•           Direct current inverters

•           Direct current charge controller

•      Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004

Penstock pipes for use in hydro power projects

•           Exempted from VAT under the VAT A ct.

•           Import duty is 0 % instead of 10 % or 25% for one year.

Plastic bag bio gas digesters

•      Exempted from all taxes under the 5th schedule of the East African Community Customs Management

Act, 20 0 4

Water treatment effluent plant

•      Exempted from all taxes under the 5th schedule of the East African Community Customs Management

Act, 20 0 4

HOTEL AND TOURISM

Any of the following goods engraved or printed or marked with the hotel logo imported by a licensed hotel for its use:

Description                                                   Tax incentive

a) Washing machines

Machine for washing clothes, bed linens, etc.

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

b) Kitchen ware

Instruments and utensils found in a kitchen, particularly those associated with the preparation and serving of food.

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

c) Cookers

Utensil, device, or apparatus for cooking

•     E xempted from all taxes under the fifth

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

d) Fridges and freezers

A box, room, or cabinet in which food, drink, etc., are kept cool by means of ice or mechanical refrigeration

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

e) Air conditioning systems A system used for cooling and drying the air in a building, room, etc.

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

f) Cutlery

Edged or cutting tools specifically implements for cutting and eating food.

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

g) Televisions

A device that receives television signals and reproduces them on a screen

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

h) Carpets

A carpet is a textile floor covering typically consisting of an upper layer of pile attached to a backing

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

i) Furniture

Large movable equipment, such as tables and chairs, used to make a house, office, or other space suitable for living or working

•

Exempted from all taxes under the 5th schedule of the East African

Community Customs Management Act, 20 0 4

j) Linen and curtains Linen: Sheets, pillowcases, and duvet covers

Curtain: A piece of material suspended at the top to form a covering or screen, typically one of a pair at a window

•

Exempted from all taxes under the 5th schedule of the East A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

k) Gymnasium equipment Exercise equipment is any apparatus or device used during physical activity to enhance the strength or conditioning effects of that exercise by providing either fixed or adjustable amounts of resistance, or to otherwise enhance the experience or outcome of an exercise routine

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

2) Bathrobes

•

Import duty is applicable at a rate of 0 % instead of 25% for one year when imported by a licensed hotel.

3) Clothes-dryers

•

Import duty is applicable at a rate of 0 % instead of 10 % for one year when imported by a licensed hotel.

4) Motor car for transportation of tourist imported by tour operators upon recommendation by a competent authority responsible for tourism promotion in a partner state provided the Vehicles meet the following conditions;

a)                   They are four wheel drive with open roof facility for game viewing and have a seating capacity not exceeding 12 passengers.

b)                  They have provisions for camping, rescue and first aid equipment, baggage and compartment and communication fitting s.

c)                   They are of a colour that blends with the environment where they operate and have a clear and conspicuos label or marking of

“Tourist vehicle.”

d)                  Any other condition that the commisioner may impose.

Provided that duties shall be payable upon disposal for other use or chang e of use

•

Exempted from all taxes under the fifth schedule of the East African Community Management Act, 20 0 4

5) Sig htseeing buses

a.         Front facing comfortable reclining coach seats.

b.         Basic lavatory facilities.

c.          Provisions for first aid equipment, communication fittings and luggage compartment.

d.         Seating capacity above 20 .

e.         Any other condition the commissioner may impose or vary.

Provided that duties shall be payable upon disposal for other use or chang e of use.

•

E xempted from all taxes under the fifth schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

6) O verland truck

•        High clearance for off road driving .

•        Forward facing comfortable reclining coach seats.

•        Inverter for charging electrical items.

•        Camping stocks, tents, kitchen and food storag e.

•        Windows for good all round view.

•        Provisions for first aid equipment, communication fittings          and luggage compartment.

•        Any other condition the commissioner may impose or vary.

Provided that duties shall be payable upon disposal for other use or chang e of use

•  

E xempted from all taxes under the fifth schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

7) Tourism boats

•

Tourism boats imported by a lincesed tour operator exempted from taxes under the 5th S chedule of the E A C C MA .

SECURITY SECTOR

D escription

Tax incentive

2)W alk throug h m etal detec tors Walk throug h” metal detectors used for security screening at access points in prisons, courthouses, and airports to detect concealed metal weapons on a person’s body

•

E xempted from all taxes under the fifth schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

3) C C T V c am eras

C C TV (closed-circuit television) is aT

V system in which signals are not publicly distributed but are monitored, primarily

for surveillance and security purposes

•

E xempted from all taxes under the fifth schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

1)Hand held m etal detectors Hand Held Metal D etectors are used by S ecurity, Police and Military offi cers to carry out a non-invasive search of a person for

metallic items

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

4 ) B om b d etec tors

A bom b detec tor is a device that enables non – destructive inspection to determine whether a container contains explosive material.

E xplosive detectors are commonly used at airports, ports and for border control

•

E xempted from all taxes under the fifth schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

5) Under carriag e Mirror A n under vehicleinspection system which is used to detect threats such as bom bs that are hidden underneath vehicles

•

E xempted from all taxes under the fifth schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

HEALTH & MEDICAL SECTOR

Description                                                  Tax incentive

A ny of the following g oods eng raved or printed or marked with the hospital log o imported for use in licensed hospitals, as recommended by the Director of Medical S ervices subject to such conditions and limitations as the C ommissioner may impose.

a) S hadow less lamps for use in operating theaters

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

b) B lood freezers

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

c) K itchen ware and equipment

•     E xempted from all taxes under the 5th

schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

d) L aundry equipm ent

•     E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

e) Mattresses and linen

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

f) Bedside screens

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

g ) A ir conditioners

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

h) Water heating equipments

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

i) Trolleys and stretchers

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

j) F urniture

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

2) Packag ing material for medicines

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

3) R aw materials for the manufacture of medicaments

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

4) E xamination g loves for laboratory and medical use.

•

E xempted from all taxes under the 5th schedule of the E ast A frican

C ommunity C ustoms Manag ement A ct, 20 0 4

5) Hospital furniture imported by dealers for supply to licensed hospitals

•

E xempted from excise duty under the E xcise D uty A ct.

6) Medical A utoclaves. A medical autoclave is a device that uses steam to sterilize equipment and other objects.

This means that all bacteria, viruses, fung i, and spores are inactivated

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

7) X-R ay Machines for m edical use X ray machine means an electrically powered device producing x rays for the irradiation of a human being or an animal for a therapeutic or diag nostic purpose or for industrial use

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

8) C hemical A nalysers for blood analysis

A blood chem istry analyzer m ay be used to test for many thing s, such as blood cell counts, therapeutic drug monitoring , illeg al drug use, blood typing , protein analysis, checking thyroid function, checking for the presence of antibodies, and, when used by patients at home, for g lucose or cholesterol monitoring

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

9) O phthalmic instruments and appliances. This device is used to examine the eye.

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

10 ) Dental drill equipment A dental drill or dentist’s drill is a small, hig hspeed drill used during dental procedures, usually to remove decay and shape tooth structure prior to the insertion of a filling or crown. A dental drill may also be used in the cleaning and shaping of root canals during endodontic treatment, or to remove old or temporary filling s or crowns prior to the insertion of new or permanent restorations.

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

11) Ultrasound m achinery

A n ultrasound machine makes imag es so that org ans inside the body can be examined. The machine sends out high- frequency sound waves, which reflect off body structures. A computer receives the waves and uses them to create a picture. The test is done in the ultrasound or radiolog y department.

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

12) S yring es

A medical device that is used to inject fluid into, or withdraw fluid from, the body. A medical syring e consists of a needle attached to a hollow cylinder that is fitted with a sliding plung er.

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

13) C ardio g raphic m achine A machine for recording the beating of the heart.

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

14 ) W heel c hairs A wheelchair is a manually operated or power- driven device

desig ned primarily for use by an individual with a mobility disability for the main purpose of indoor, or of both indoor and outdoor, locomotion.

•

E xempted from all taxes under the 5th schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

15) C rutches Medical D efinition of C rutch.

C rutch: A wooden or metal vertical prop that helps support a disabled person while he or she is walking . A rm crutches typically are metal and have a sing le shaft with a projecting handgrip and a cuff that closes around the arm. Crutches usually have a nonskid rubber tip on the bottom

•

E xempted from all taxes under the 5th schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

16) Artificial parts of the body

(teeth, leg s, joints). D entures, (also known as false teeth), are prosthetic devices constructed to replace missing teeth; they are supported by the surrounding soft and hard tissues of the oral cavity. C onventional dentures are removable (removable partial denture or complete denture.

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

17) A prosthesis is an artificial device/substitute or that replaces a missing body part such as tooth, leg , arm, knee, facial bone, another joint, hip etc which may be lost through trauma, disease, or cong enital conditions

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

18) Hearing aid.

A hearing aid is a small electronic device that you wear in or behind your ear. It makes some sounds louder so that a person with hearing loss can listen, communicate, and participate more fully in dailya ctivities.

A hearing aid can help people hear more in both quiet and noisy situations

•

•

E xempted from VAT under the VAT A ct.

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

19) Medicated cotton wool

•

E xempted from VAT under the VAT A ct.

•

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

20 ) Medical bandag e

•

E xempted from VAT under the VAT Act

•

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff .

21) R efrig eration equipment for dead bodies for use in Hospital, city council or funeral hom e”

•

E xempted from all taxes under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

22) Motor boat am bulance

•

Import duty is 0 % under E ast A frican C ommunity C ommon

E xternal Tariff and exempted from VAT

23) Motor Vehicle ambulance

•

Import duty is applicable at a rate

0 % under East African Community Common External Tariff and exempted from VAT

24 ) Maternity (m am a) kit

•

Import duty is applicable at a rate of 0 % instead of 25% for one year.

•

Exempted from VAT

25) Braille machines used by the blind

•

Import duty is applicable at a rate 0 % instead of 25% for one year.

•

Exempted from VAT

26) B raille paper used by the blind

•

E xempted from all taxes under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

27) Heating, ventilating and air conditioning equipment for pharmaceutical manufacturers.

•

E xempted from all taxes under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

28)Tsetse fly traps

•    E xempted from all taxes under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

CONSTRUCTION SECTOR

D escription                                                  Tax incentive

S pecialised vehicles

•        C oncrete Mixers – Self propelled

•        Concrete Pumps

•           The equipment is free of import duty by tariff .

•           VAT is deferrable for VAT reg istered companies

E arth Moving Machinery

•        Excavators

•        Bull dozers

•        Ang le Dozers

•        The equipment is free of import duty by tariff.

•        VAT is deferrable for VAT Registered Companies

Cranes for Construction

•        The equipment is free of import duty by tariff.

•        VAT is deferrable for VAT Registered Companies

S caff olding

•     W hen obtained from the region of East Africa, they shall be exempted from import duty.

S urveying E quipment

•        Global Positioning Systems (GPS)

•        Theodolites

•        Line of site equipment

•        Rangefinders They are largely used by road construction firms, surveyors, oil exploration, mining.

•  

•  

The equipment is free of import duty by tariff.

VAT is payable

Goods C arrying vehicles – Tippers

•        Gross Vehicle Weight exceeding 5 tonnes but not exceeding 20 tonnes.

•        Gross Vehicle Weight exceeding 20 tonnes.

•  

•  

Goods carrying vehicle with gross weight exceeding 5 tonnes but not exceeding 20 tonnes import duty is 10% for one year Goods carrying vehicle with gross weight 20 tonnes and more is free of import duty for one year.

Temporary imports of Construction Machinery of a specialised nature for use in the construction sector that is not listed above. Terms and

conditions as specified in the East A frican C ommunity- C ustoms Manag ement A ct, 20 0 4 apply.

•  

Taxes suspended and goods secured on bond that is cancelled upon re export.

Pipe line construction of oil and gas from Uganda to D ar- es -salaam

•  

Inputs for use in the construction of the oil and g as pipeline are exempted from all taxes under the fifth schedule of the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

Hydro power construction equipment and inputs.

•  

The supplies for the use in hydropower project are exempted from VAT.

R eg ional E conomic

C ommunities (R E C s) that include East African C ommunity (E A C ),

C ommon Market for E ast and C entral A frica

(C O ME SA ). S oon entering the T R IPA R T IT E that will include

E A C , C O ME S A and S A D C (S outh A frican D evelopm ent C o- operation)

•  

•  

Imports from the R eg ional

E conomic C ommunities are g iven preferential import duty treatment.

The country has industries for local inputs that are of hig h quality and manufactured in Ug anda.

These items when procured locally attract only localt axes.

•

Industries that produce items such as cables, cement, iron bars, pipes, nails, roofing sheets etc

Upcoming projects such as Standard Gaug e R ailway (S GR ) are offering opportunities in construction sector.

•

The project if funded by donors shall have its inputs exempted from taxes under the E ast A frican C ommunity C ustoms Manag ement A ct, 20 0 4 .

Pre-fabricated building s for factory use imported by reg istered manufacturers or other entities such as warehouse construction.

•

VAT D eferrable for pre- fabricated building s for factory use.

The supply of earth moving equipment and machinery for development of an industrial park or free zone to a developer of an industrial park or free zone whose investment is at least fifty million United States Dollars

•

VAT is applicable at 0 % under the VAT A ct.

The supply of construction materials for development of an industrial park or free zone to a developer of an industrial park or free zone whose investment is at least fifty million United States Dollars

•

•

VAT exempt under the VAT A ct Excise duty is nil