Kampala — Alcohol manufacturers under Uganda Alcohol Industry Association (UAIA) have petitioned government over a new tax that was implemented on August 31.
The tax – Digital Tax Stamps – according to Mr Ian Rumanyika, the Uganda Revenue Authority manager for public and corporate affairs, was introduced to curb smuggling, counterfeits and informal production of alcohol. However, the tax has received resistance with manufacturers, arguing that it increases the costs of production.
They also claim they were not sufficiently consulted.
Mr David Onyango, the UAIA secretary general, said members already pay taxes, arguing that URA should use the same to cater for the Digital Tax Stamps.
“The tax has increased the costs of production and this is likely to affect the price of alcohol,” he said.
Similarly, Mr Onapito Ekomoloit, the Nile Breweries director public and corporate affairs also a member of UAIA, said because the tax has a cost effect, it will lead to a rise in the price of alcohol.
“Consumers will not be able to buy our products which in the long run will affect the growth of the industry,” he said.
However, Mr Rumanyika refuted UAIA’S allegation, saying consultation about the Digital Tax Stamps, including the amount to be paid, had been communicated to all stakeholders.
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Publish date : 2018-11-01 12:11:50