URA has advised local manufacturers to leverage existing tax relief facilities to scale their operations and advance Uganda’s development goals.
Speaking to a section of manufacturers in Jinja on Tuesday, Gordon Mutungi, the URA Customs Supervisor in the region, detailed various incentives designed to lower the cost of doing business for manufacturers. These include duty drawbacks, free zones, VAT deferment, export financing under the Uganda Development Bank (UDB), and the newly instituted East African Community (EAC) regional bond.
“Duty remission allows you to import raw materials at a 0% rate, directly supporting low-cost production, import substitution, and export promotion,” Mutungi told participants.
He highlighted the EAC bond as a critical cost-saving tool that allows manufacturers to utilize a single bond across the entire region rather than multiple individual ones.
However, Mutungi cautioned against common errors in customs documentation such as incorrect HS codes, misspelled consignee names, omitted weights, or missing stamps, noting that these could lead to delays in clearing consignments.
The engagement, organized in collaboration with the Uganda Manufacturers’ Association (UMA) aimed to enhance manufacturers’ tax awareness and compliance.
Umar Kiyaga, the Supervisor of Domestic Taxes, emphasized the importance of registering for all relevant tax heads.
“If you have employees, you must register for PAYE; if you produce excisable goods, you must register for VAT,” Kiyaga stated, adding, “always declare income and pay promptly to avoid friction.”
He also advised manufacturers without formal accounting systems to utilize the Electronic Fiscal Receipting and Invoicing Solution to maintain the accurate records required for tax purposes.
Manufacturers speak out.
While participants raised concerns around various issues, including the numerous customs reports and rigid processes that have not accommodated the current geopolitical challenges, they welcomed the dialogue.
“This engagement is crucial in aligning manufacturers toward compliance,” Jamal Rashid from Kakira Sugar observed. “It will help individuals and businesses improve financial planning, understand tax obligations, and avoid penalties.”
Carla Mundua from Kiboko Mabaati shared similar sentiments, noting that organizing such workshops more frequently would greatly benefit manufacturers.
The engagement is the first of many lined up across the country as part of URA’s efforts to enhance tax compliance in the manufacturing sector.
By Dorah Orikiriza
