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  • Olive Kigongo, Uganda National Chamber of Commerce and Industry(UNCCI) President and UNCCI Directors having a photo session with Officials of the Kenya National Chamber of Commerce and Industry

News Achives

Signing of Memorandum of Understanding (MoU) with Jordan Chamber of Commerce.

Uganda National Chamber of Commerce and Industry (UNCCI) has signed Memorandum of Understanding (MoU) with Jordan Chamber of Commerce. This, therefore gives the two Countries all the opportunities within their competence to promote, strengthen, expand trade, economic, scientific, technological cooperation and other business relations between enterprises, entrepreneurs and organizations.
The event took place this week in Amman, Jordan. UNCCI President Olive Kigongo signed on behalf of UNCCI while Senator Nael Al Kabariti signed on behalf of Jordan Chamber.
“This is yet another milestone for Uganda. Taking into account new opportunities to develop mutually beneficial trade and economic relations,” Kigongo said.
She also added that the MoU allows the Countries exchange information of mutual interest on economy, foreign trade, trade rules and customs, as well as on amendments regarding trade legislation and other information materials.

 

E-Single Window System Training for Exporters

UGANDA Revenue Authority (URA) has partnered with Uganda National Chamber of Commerce and Industry (UNCCI) to train its exporters on the use of e-Single Window system.

The system details how UNCCI could electronically issue and authorize Membership Certificate and Certificate of Origin electronically. This therefore will compel all exporters outside EAC non-preferential certificates of origin to be members of Chamber in order to be recognized by the e-SW.

This is part of implementation of the World Trade Organization’s Trade Facilitation Agreement signed in 2014 and ratified by Uganda in 2016. The e-SW is being implemented globally to ease exports by embracing information technology to reduce paper work, avoid travels and make services available online for exporters. In Uganda the first phase is being implemented by a Project Implementation Unit domiciled at Uganda Revenue and the system being used is also hooked to URA portal.

The e-SW Project Implementation Unit has already designed portals that are already being used by: URA, UNBS, Uganda Coffee Development Authority among others.

Happy Eid el Fitr

Uganda National Chamber of Commerce & Industry (UNCCI) wishes to convey Idd el Fitr message to our muslim members, partners, the entire business community upon successful completion of the Holy Month of Ramathan. We convey warm greetings and pray for more blessings in your business activities and wish you prosperity.

Uganda National Fertilizer Policy launched

The Uganda National Fertilizer Policy was launched, during the Economic Policy Research Centre’s 6th Agriculture and Food Security Forum in Kampala, June 5, 2017.

The policy brings together all the related fragmented regulations into a single comprehensive framework on fertilizer. It was developed by the Ministry of Agriculture Animal Industry & Fisheries in close collaboration with EPRC, with funding from the Alliance for a Green Revolution in Africa. The policy was first approved by Cabinet in May 2016. Partners are encouraged to get acquainted, popularize and support the policy to enhance agro-production in Uganda.

A modern seed bed that is well-fertilized at Namulongo Agriculture Research Centre that can enhance production in Uganda if adopted, 2017. File Photo.

Food prices hike as rainy season wanes in Uganda

Those who are used to eating meat will now buy at 10k per kilo. Maize floor which is the staple for the urban poor and villagers has reached 3,000/= per kilo! Rice, Irish potatoes goes for 5,000/= per kilo! Even cheap foodstuff like cassava is slowly becoming ostentatious at 1,500 per kilo.

Don’t even try balance diet because fruits and vegetable that contains vitamins and micro-nutrients are exorbitant. World wars I and II taught Europeans to have small families to avoid embarrassment of starvation. Now climate change and market economy will painfully teach Ugandans that producing many children that you can’t feed is a sin! Most families in both rural and urban areas, even in Kampala now have one meal a day. Gluttony is now the preserve of nouveau riche who can afford three meals a day.

For majority there is no need for physical exercise because starvation will trim you in shape. Blame it on the rains! June is dry and perhaps July may be the same. Gone is the cliché that Uganda is the food basket, for famine looms for many in the Pearl of Africa!

The National Budget read in favor of Infrastructure

If your business is in road, railway, refinery, pipeline and power sectors then you have reason to smile after the Budget was read by Hon. Matia Kasajja. It is so because over 4 trillion shilling was offered for those sectors.

Likewise if Government of Uganda owes you some money, be ready to smile all the way to your bank, because over 2 trillion shilling was to redeem repayment of loans. Equally if you are in the security sector, then your activities are properly secured because the dime of over 3 trillion is there for you to partake.

However as mentioned in the Bible: those who have little even that will be taken away! Happy are the poor for theirs are in heaven! Agriculture with over 70% of Ugandans employed yearned with only 3.5% of the National Budget! Who said the Maputo Declaration of 10% of the GDP is important for agriculture-the sector of the poor? Trade Industry and Cooperatives had only 98 billion dropped in their begging bowl! Traders who had hope of payment of domestic arrears got 300 billion out of 2.8 trillion accumulated! Tourism which is the cash cow got a paltry 0.3% of the Budget!

The Budget of 28.5 trillion shilling was read with utmost agility, though majority of people are expected to pick their share from the bits and pieces dropping from the high table of infrastructure.

Minister of Finance Planning & Economic Development, Hon. Matia Kasajja holds the brief case containing the Budget 2017-2018, at Serena Conference Centre, June 7, 2017. File Photo.

UNCCI participates in UNBS validation of Strategic Plan

Uganda National Chamber of Commerce & Industry participated in the validation workshop for Uganda National Bureau of Standards Strategic Plan 2015-2020 at Imperial Royale Hotel, June 7, 2017. The Strategic Plan was already endorsed by the Cabinet and the National Planning Authority. It conforms to the Second National Development Plan (NDP2).

Among the key highlights was the involvement of partners and the business community to advance observance of standards in all aspects of socio-economic activities. The representative of UNCCI, Martin Okumu at the validation workshop rooted for concerted efforts to create awareness of the essence of standards for ordinary Ugandans and the basic business communities.

He urged UNBS to be vigilant at the porous borders of Uganda to avoid importation of dangerous substances containing hydroquinone, mercuric oxides and many counterfeits.

Indian Exim Bank and Businesses conclude visit to Uganda

A delegation of Indian Exim Bank officials and Industrialists visited Uganda, June 6-8, 2017. The visit was organized by the Right Hon. Premier, Dr Ruhakana Rugunda and the Uganda High Commissioner in New Delhi, Elizabeth Paula Napeyok. The 40-member delegation had a business forum, grand dinner, visit to the source of River Nile in Jinja, where Great Leader Mahatma Gandhi’s ashes where interred, and paid a courtesy call on His Excellency the President, Yoweri Museveni at State House Entebbe. A clarion call was made for the delegation to invest in: Oil & gas, Infrastructure, Power, Tourism, and Agriculture sectors that are the flag ships for Uganda’s development.

The Right Hon. Premier, Ruhakana Rugunda, Hon. Matia Kasajja and the Delegates from Indian Exim Bank at the Presidential Hall in Kampala, June 5, 2017. File Photo.

UNCCI Weekly Newsletter 2017 – Volume 1 Issue 5

Invitation for 50th Cairo International Fair 2017

Members of Uganda National Chamber of Commerce & Industry (UNCCI) and the entire business community in Uganda have been invited for the 50th Cairo International Fair, scheduled March 15-24, 2017. The business community is urged to positively consider participation due to enormous opportunity to do business matching, investment opportunities in many sectors, business agencies for Egyptian products and services and general trade with decent profit margin. For those interested, please come to UNCCI Secretariat to get more information on participation, visa and travel. Egypt is generally expanding business interest in Uganda and EAC region.

Agriculture mechanization equipment available at AgroMaxUg

AgroMaxUg is a devoted promoter of agricultural technologies. It is determine to assist farmers with the following: drip and overhead irrigation system; galvanized greenhouses and shade nets; quality propagated planting materials seedlings; holistic program designed for NGOs and individual farmers; hands-on training for specific customers including farm management; collection hub and a link to farmers to the market. It also stocks: anti birds nets, insect proof nets, fruit drying nets and planting bags among others. For commercial farmers, small scale vegetable and fruit farmers, please contact Uganda National Chamber of Commerce and Industry for details on how you can access and work with AgroMaxUg. Uganda is spearheading agriculture mechanization to create value  addition and enhance export.

 Maize exporters from Uganda urged to observe standards

Uganda National Bureau of Standards (UNBS) called on all maize exporters including stakeholders in the production, processing and marketing to observe maximum standards in order to export to Kenya and Rwanda. The advice was given at a workshop organized by UNBS in conjunction with COMESA, EAC and SADC at Hotel Africana, January 31, 2017. Key stakeholders noted that over 60% of maize exports from Uganda are handled by the informal sectors who rarely observe standards. It was also revealed that maize cannot be allowed by UNBS, URA custom and the Ministry of Agriculture Animal Industries and Fisheries to cross through the borders unless the moisture content is 13.5% and below! Standards need to be checked at harvest, storage, drying, transport and loading levels, according to experts.

Money Expo 2017 draws nearer at Mandela National Stadium

The Money Expo 2017 for Agriculture entrepreneurs shall be at Mandela National Stadium, February 17-19, 2017. According to the CEO of The New Vision Media Group, Robert Kabusenga, the annual expo is to bring all stakeholders in the agriculture sector under one roof to amicably interact and showcase their products and essential services. Farmers, seed companies, extension services, agro-financiers, researchers, plant and animal breeders are expected to actively participate. Students will pay 5,000/=, while individuals will pay 10,000/= and those who need special training will pay 20,000/=. Many members of Uganda National Chamber of Commerce and Industry among other business community members are expected to participate.

O-Level results for 2016 revealed education is brisk business

The recently released result for O-Level 2016 revealed education is brisk and very lucrative business in Uganda. Majority of schools whose students excelled are private, apart from the traditional high-flyer schools with massive support from rich parents and alumni. Private schools throughout the country, including remote districts have excelled. Government schools farther away from Kampala, Mukono, Wakiso, Entebbe, Jinja and Mbarara registered majority of failures. Gone are the days when students from all corners of the country performed fairly uniform and could qualify to go for A-Level in schools far away from their rural homes. Private schools are at liberty to charge fees the way they want to provide quality teachers and scholastic materials to ensure good grades. The Government’s Universal Secondary Education schools are known for churning out mediocre over the years.

1st Agriculture Exhibition for EAC at UMA Lugogo

The 1st Agriculture Exhibition for the EAC region is being organized at Uganda Manufacturer’s Association Show Ground at Lugogo, March 24-26, 2017. The Exhibition that will attract participants from the six EAC member countries, Europe and Asia will cover all UMA halls and the open ground opposite Shoprite and Game supermarkets. International exhibitors are expected to display latest agriculture equipment to attract buyers from EAC. It is well known that EAC is very attractive market with a population of 158 million; only 22% in urban area with the rest in rural areas, mainly employed in agriculture; EAC has a combined land area of 2.42 million square kilometers; and a combined Gross Domestic Product of US $ 169.5 billion. It is expected that the Exhibition will attract over 2 million exhibitors, buyers and other participants.

EAC 2nd Manufacturer’s Summit & Exhibition in Kigali in May

The EAC 2nd Manufacturer’s Summit & Exhibition preparation is in high gear in Kigali, Rwanda, May 23-25, 2017. The Summit meant to create awareness, increase knowledge on manufacture, share lessons learnt and increased interaction and dialogue shall be open by H.E the President, Paul Kagame at the new Rwanda Conference Centre. The summit is being jointly organized by: Kenya Association of Manufacturer’s (KAM), Uganda Manufacturer’s Association (UMA) and the Tanzania Industries Confederation (TIC). It is expected that many investors coming from around the world will attend to network, conduct business to business and perhaps sign business deals to boost manufacturing within the region.

For further inquiries about the newsletter please use the following addresses: 0750788100, 0752626103, communications@chamberuganda.com

UNCCI Members take on Anti-counterfeiting Goods Bill

Government of Uganda is proposing Anti-Counterfeiting Goods Bill to prohibit the manufacture and trade in counterfeit goods that infringe  upon protected intellectual property rights.

UNCCI members have taken this discussion with a mixture of opinions;

  • Some say this is a good law to protect those with good innovations.
  • Others argue that it instead hinders technology adoption which is a pillar for innovation. They insist that every technology builds on existing works.
  • Industrialists are saying that this is one way developing countries can develop local industries by leveraging on imported technology, for it will create cheap and affordable goods.
  • Proponents of intellectual property law view this as a duplication of efforts. They argue that instead all efforts be put to implementation of already existing intellectual property law.

UNCCI is receiving views and comments on this bill and to present to parliament for consideration.

To access the draft for your scrutiny, please follow the link below; Anti-Counterfeiting-Bill-2015

Please send your views to policy@chamberuganda.com.

East Africa Legislative Assembly Visits UNCCI, November 2, 2016

The private sector of East Africa Legislative Assembly(EALA) have developed a Code of Conduct for business in East African Community together with Rules & Procedures. This is an initiative aimed at enhancing ethical business practices in the areas of Human Rights, Environment and Anti-corruption. UNCCI pledged that EALA take on to adopt the code and legalise it.

Budget Highlights, Analysis and Tax Changes from EAC Partner States’ 2016/17

On 8th June 2016 the four EAC Partner States: – Kenya, Tanzania, Uganda and Rwanda jointly unveiled their Budgets for the Fiscal Year 2016/2017. The 2016/17 Budgets for the four countries have targeted following real GDP growth: 5.3% for Kenya, 7.2% for Tanzania, 5.3% for Uganda and 7.0 for Rwanda. (Burundi does not read their budgets at the same time as the other Partner States).

In order to spur growth of industries, employment creation increase revenue and enhance equity and fairness in tax administration, the Governments of the 4 EAC Partner States of Tanzania, Kenya, Uganda and Rwanda came up with various tax changes as follows:

Customs Duty

In line with the decisions of the Pre-Budget Consultations of the Ministers responsible for Finance and Economic Affairs from the EAC Partner States which held their meeting in Arusha from 2nd -7th  May 2016, the Governments introduced the following changes with regard to EAC Common External (CET):

  • Iron and Steel Products

Aiming at protecting domestic iron and steel mills against unfair competition from cheaper imported iron and steel products, the EAC Partner States introduced a specific duty rate of USD 200 or 25% import whichever is higher on wide range of iron and steel products. Tanzania for example introduced 25% or USD200/MT, whichever is higher, for one year on following products:  HS Codes 7210.41.00; HS Codes 7210.49.00; HS Codes

7210.61.00; HS  Codes 7210.69.00; HS  Codes 7210.70.00; HS  Codes 7210.90.00;  HS Codes  7212.30.00;  and  HS  Codes  7212.40.00.     HS  Codes  7214.10.00;  HS  Codes

7214.20.00; HS Codes 7214.30.00; HS Codes 7214.91.00;   HS Codes 7214.99.00; HS

Codes: 7216.10.00; HS Codes 7216.21.00; HS Codes 7216.22.00; HS Codes 7216.50.00; HS   Codes   7228.10.00;  HS   Codes   7228.20.00;  HS   Codes   7228.30.00;  HS   Codes

7228.40.00; HS  Codes 7228.50.00; HS  Codes 7228.60.00; HS  Codes 7228.70.00; HS Codes 7228.80.00; HS Codes 7212.40.00; HS Codes 7215.10.00; HS Codes 7215.50.00; HS   Codes   7215.90.00;  HS   Codes   7216.61.00;  HS   Codes   7216.69.00;  HS   Codes

7216.91.00; HS Codes 7216.99.00.

Additionally,:-

(a) Tanzania increased CET rate on flat rolled products of iron or non-alloy steel from 0% to 10% on the following products: HS Code 7208.54.00; HS Code

7208.90.00; HS Code 7208.52.00; and, HS Code 7208.53.00

(b) Tanzania also increased the import duty rate on Bars and rods of iron and steel from 10 percent to 25 percent on the following HS Codes: `HS Code 7213.10.00; HS  Code  7213.20.00;  HS  Code  7213.99.00;  HS  Code  7227.10.00;  HS  Code

7227.20.00; HS Code 7227.90.00; HS Code 7308.20.00; HS Code 7308.40.00; and

HS Code 9406.00.90.

The above changes are in line with EABC Tax Proposals submitted to the EAC Secretariat following the CET Study Report on EA CET Review 2016 done by EABC and the Manufacturers associations.  It’s our hope the measures will cushion the domestic iron and steel mills against unfair competition from cheaper imports of the iron and steel products.

  • Portland Cement

In order to encourage and protect domestic production of cement in the country against stiff competition from imported cement, Tanzania has increased import duty rate on cement (HS Code 2523.29.00) for one year from 25% to 35%.

  • Textile and Leather Products

Tanzania, Kenya and Uganda increased the specific duty rate on worn clothes and shoes from 0.2 USD/KG to 0.4 USD/KG while Rwanda applied 2.5USD/KG for worn clothing and 5USD/KG for worn shoes. The measure is in line with EAC Summit directive requiring EAC Partner States to gradually phase-out importation of used clothes and footwear in the region. Meanwhile Uganda has proposed to increase the environment levy on used clothes, shoes and other articles from 15% to 20%.

To ensure that Partner States procure their textile and footwear requirements from within the region the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) meeting in Arusha on 27th May 2016 granted the request of Kenya and Rwanda  a stay application of the Common External Tariff (CET) rate on garments and leather footwear manufactured in Export Processing Zones (EPZ) on the 20% of the annual production allowed in the EAC Customs Union Protocol to be sold with the two respective Partner States for one year. This implies that Kenya and Rwanda will charge 0% import duty on the purchases of made up garments and leather footwear from their respective EPZs.

  • Sugar and Confectionery

In order to encourage domestic production, discourage importation and fight abuse in the usage of sugar for industrial use (HS.1701.99.10), Tanzania has decided to reduce progressively import duty remission levels on sugar and sugar confectionery from the current rate of 10 percent to 15% in 2016/17, 20% in 2017/18, and 25% in 2018/19.

  • Crude Palm Oil

Tanzania decided to  stay application of  0%  import duty on  crude oil  (HS Code

1511.10.00) and apply 10% for one year. The crude oil is used to manufacture edible oil. Tanzania’s measure is aimed at promotion of local production of oil seeds and growth of edible oil industries.

However, this measure is likely to create trade distortion given the fact that the other EAC Partner States mainly Uganda and Kenya are not applying the same measure and the Revised EAC Rules of Origin, 2015 does not qualify edible oil produced from imported crude palm oil as EAC originating.

  • Fishing Nets

Tanzania, Kenya and Uganda have increased the import duty rate of made up fishing nets (HS Code 5608.11.00) from 10% to 25% with the aim of protecting fishing nets which are manufactured locally in the region.

  • Aluminium Milk Cans

Tanzania and Kenya have increased the import duty (CET) on Aluminium milk cans (HS Code 7612.90.90) from 10% to 25%. The measure is aimed at protecting  local manufacturers who have sufficient capacity to manufacture these products in the region. In addition the two countries have grant duty remission to manufacturers of “Aluminium cans” on raw materials which are aluminium plates and sheets classified under HS Codes 7606.12.00 and HS Codes 7606.92.00 by charging a duty rate of 0%. Under EAC CET import duty of aluminium plates and sheets are 10%. This measure is aimed at encouraging production of “Aluminium cans” in the region.

  • Imposition of Import Duty on COMESA Goods by Uganda

Uganda has proposed to impose import duty on the various goods from COMESA. These   include:   lubricants,   un-denatured   alcohol,   steel   and   steel   products, electronics, paper & paper products and diapers.

NB: Unlike Kenya and Tanzania whereas their Budgets have included changes on Custom Duty (Common External Tariff CET) Uganda’s budget provided that the details of the adjustment of the CET rates will be gazetted by EAC Secretariat.

Value Added Tax (VAT)

Value Added Tax (VAT) being one of domestic taxes which are still under control of each country mandate, each Government made different changes to suit their budget objectives.

  • Tourism Sector

In order to revive the ailing tourism industry in Kenya, make it more competitive and promote local tourism the Kenya Government has proposed VAT exemption on commission earned by tour operators as well as exemption of park entry fees to the National Parks from VAT. Meanwhile contradicting this objective Kenya has also proposed to increase Air Passenger Service Charges by 25% for external travellers from USD 40 to USD 50 and for internal travellers by 20% from KES 500 to KES 600.

Tanzania however treated the tourism sector differently proposing to introduce 18% VAT on tourism services such as supplies tourist guiding, game driving, water safaris, animal or bird watching, park fees and ground transport services.

  • Financial Services

Tanzania proposed introduction of 18% VAT to all fee based financial services. Only interest paid on loans will be exempted from VAT. Meanwhile Tanzania proposed VAT exemption on Aviation insurance with the aim of promoting aviation industry which is considered to be still in infant stage and needs to be supported in order to be able to cover insurance risks without additional costs resulting from taxation.

  • Zero rate VAT between Tanzania mainland and Zanzibar for supplies of goods

Aiming at resolving the issue of VAT refund claims between Zanzibar and Tanzania Mainland the Government has propose to introduce VAT at 0% on the cross –union (Mainland Tanzania and Zanzibar) supplies of goods .This implies that goods manufactured in Mainland Tanzania and sold to Zanzibar will attract 18% VAT in Zanzibar but 0% VAT in Mainland Tanzania while those goods manufactured in Zanzibar and sold in Mainland Tanzania will attract 18 VAT in Mainland Tanzania and

0% in Zanzibar.

  • VAT exemptions on ranges of products

Both Tanzania and Kenya introduce new VAT exemptions. In Tanzania new products which were exempted from VAT include: all processed vegetable and unprocessed edible animal products including live fish, fruits, nuts, cereals, seeds and soya beans; vitamins and food supplements; water treatment chemicals, and bitumen .

In Kenya the products which were exempted from VAT include:  supply of made-up garments and leather footwear supplied by Export Processing Zones (EPZ), all raw materials used in the manufacture of animal feeds, Liquefied Petroleum Gas (LPG) etc.

In  Uganda  exemption  was  proposed  on  solar  and  geothermal  power  projects; ranges of agricultural machinery, tools and implements such as hullers, oil presses, grain dryers, manure spreaders, fertiliser distributors, transplanters,  juice presses and crushers, seed and grain sellers, silage chopper machines, colour sorter for coffee and coffee roasters.

Though VAT exemption measures are intended to lower prices of targeted products this is unlikely to happen because VAT exemptions in most of cases add up to the cost of production due to the fact that the non-recoverable VAT associated with exemption will finally be passed on to the consumers in the form of higher prices of goods and services as producers do not claim for refunds. For domestic producers the best option will be rather zero-rating of VAT than exemption as this will allow them to claim refunds for VAT paid for other inputs used to produced final product.

Excise Duty

Given the fact that excise duty is among domestic taxes still not harmonized, each

EAC Partner State had liberty to come up with their own changes.

  • Motor Vehicles

Kenya has proposed to amend the excise duty on motor vehicles from the specific duty rates of KES 150,000 and KES 200,000 dependent of the age of the vehicle to an ad-valorem rate of 20% based on the value of vehicle.

  • Illuminating kerosene

Kenya has proposed to introduce excise duty on illuminating kerosene at a rate of KES7,205 per 1000 litre. The measure is intended to fight adulteration of other petroleum products with kerosene which was considered to be cheaper due to the absence of excise duty.

  • Petroleum Product Fuel

While Tanzania and Kenya maintained the current excise taxes on fuel, Uganda has proposed to increase excise duty on motor spirit (gasoline) from Ush 1,000 per litre to Ush 1,100 per litre and gas oil from Ush680 per litre to Ush780 per litre.  Uganda also proposed to increase excise duty rate of motor vehicle lubricants from 5% to 10%.

  • Cosmetics and beauty products

Aiming at harmonization of excise duty regime with other EAC Partner States, Kenya has proposed an introduction of excise duty at rate of 10% on cosmetics and beauty products.

  • Furniture

In order to promote local production of furniture using locally available timber

Tanzania has proposed to increase excise duty rate of imported furniture Code

94.01 and HS Code 94.03)   from 15% to 20% .In Uganda , the Government has proposed removal of excise duty on specialized hospital furniture from 10% to 0% while excise duty on other furniture remained unchanged at 10%.

  • Telecommunication services

Tanzania has proposed to introduce 10% excise duty to all charges or fees payable by a person to a telecommunication service provider in respect of money transfers to cover all commission received in the provision of mobile services. In Uganda, the Government has proposed removal of existing USh9 per minute excise duty on incoming international calls.

  • Plastic Bags

Tanzania has proposed to abolish the manufacturing, selling, buying and use of plastic bags of less than 50 microns. This measure is intended to improve the management and protection of environment against the effects of plastic bags.

  • Non-Petroleum Products

In Uganda the Government has proposed new excise duty of 80% on Ready To Drink (RTD) spirits and increased of excise duty rates on tobacco, cement which is Ush1,000 /50kg, cane or beet sugar and chemically pure sucrose in solid form which will be Ush100/kg,   sugar confectioneries   which will be 20% .  In Tanzania the Government  has  proposed  to  increase  by  5%  excise  duty  on  non-petroleum excisable products (except bolted water) including alcohol, soft drinks, juice and tobacco. The new duties are as per below table:

Table 01: Tanzania New Excise Duty Rates on Non-Petroleum Products

S/N Goods Old Rate (TZS) Proposed           New

Rate(TZS)

1 Soft drinks 55 per litre 58 per litre
2 Locally produced fruit juice 10 per litre 11 per litre
3 Imported fruit juice 200 per litre 210 per litre
4 Beer made from local un-malted

cereals (eg Kibuku)

409 per litre 430 per litre
5 Other beer made from malt 694 per litre 729 per litre
6 Other Non-alcoholic beer ( including energy drinks and non- alcoholic beverages) 508 per litre 534 per litre
7 Wine  produced  with  domestic

grapes content exceeding 75%

192 per litre 202 per litre
8 Wine produced with more than

25% imported grapes

2,130 per litre 2,237 per litre
9 Spirits 3,157 per litre 3,315 per litre
10 Cigarettes without filter tip and

containing      domestic      tobacco more than 75%

11,289      per      per

thousand cigarettes

11,854 per thousand

cigarettes

11 Cigarettes   with   filter   tip   and

containing      domestic      tobacco more than 75%

26,689                 per

thousand cigarettes

28,024                   per

thousand cigarettes

12 Other cigarettes not mention in

(10) and (11)

48,285                 per

thousand cigarettes

50,700 per thousand

cigarettes

13 Cut rag or cut filler 24,388per kg 25,608 per kg
14 Cigar 30% 30%
15 Lubricating oil 665.50 per litre 699 per litre
16 Lubricating greases Cent75 per kg Cent 79 per kg
17 Natural gas Cent  43  per  cubic feet Cent   45   per   cubic feet

However, charging of excise duty based on local content as it contained fruit juices, wine and cigarettes is likely to create trade disputes between Tanzania and other EAC Partner States intending to transfer (export) similar product to Tanzania as this tax will create discrimination between locally produced products and same or like imported ones. Article 15 on National Treatment of EAC Customs Union Protocol prohibits Partner States from enacting legislation or applying administrative measures which directly or indirectly discriminate against the same or like products of other Partner States.  Paragraph 2 of the same Article provides that “No Partner State shall impose, directly or indirectly , on the products of the other Partner States any internal taxation of any kind in excess of that imposed, directly or indirectly , on similar domestic products.

Other Changes on Taxes and Levies

  • Tax on Employers

Tanzania has proposed to reduce Skills Development Levy (SDL) from 5% to 4.5%. The measure is intended to provide employers with relief from tax burden and enhance compliance for revenue purposes. However, the measure is unlikely to meet the intended objective given the fact that in Tanzania taxes on employment are highest in the EAC region. Apart from 4.5% SDL, private sector employers are required to also pay

1% as Workers Compensation Fund (WCF) and contribute 10% as social security for the workers.

In Kenya the Government has proposed an additional tax deduction of 50% of the cost of the apprenticeship emoluments. However, for employers to enjoy this incentive they must engage at least 10 graduates from universities.

  • Other levies

Kenya has proposed to abolish 4% Sugar Development Levy (SLD), 1% ad valorem levy on tea, and all levies charged by the National Environmental Management Authority (NEMA) and National Construction Authority (NCA). These measures are intended to reduce the cost of doing business and eliminate administrative hurdles in Kenya.

In Tanzania the Government has proposed to abolish a wide range of fess and levies charged by various regulatory authorities which are considered to be undermining the Government efforts to improve business environment. The measures are intended to provide relief to various economic activities.

The respective fees and levies proposed to be abolished included:

(i)       Tanzania Food and Drugs Authority (TFDA):

(a)        Export Permit for food – Tsh. 50,000;

(b)        Retention  fees  for  Human  and  Veterinary  medicines  from  domestic manufacturers – Tsh. 100,000;

(c)        Duplicate Certificate for Human and Veterinary medicines from domestic

manufacturers – USD 50;

(d)        Duplicate Certificate for Human and Veterinary medicines from foreign manufacturers – USD 100;

(e)        Evaluation of product promotional materials – Domestic – USD 50; (f) Abbreviated Advert – Domestic – USD 25;

(g)        Duplicate certificate for foreign food, medicines medical devices – USD

100;

(h)        Duplicate certificate for foreign Medical devices domestic – USD 30; (i)            Duplicate certificate for Medicines Domestic – USD 50;

(j)         Retention fees for imported In Vitro Diagnostics (IVD) – USD 150;

(k)        Retention   fee   for   domestic   manufactured  cosmetic   manufactured cosmetics – Tsh. 30,000;

(l)         Pre-registration  GMP   inspection  fees   for   domestic  pharmaceutical manufacturing sites – USD 250;

(m)       Medical representative foreign per company – USD 1,000; (n) 1% FOB value for cosmetics raw materials;

(o)        0.5% FOB for importation of pharmaceutical raw materials; (p)    Hospital permit for Psychotropic and Narcotics – Tsh. 10,000; (q)  Import permit for Psychotropic and Narcotics – Tsh. 50,000; (r)      Export certificates for pharmaceuticals – Tsh. 50,000;

(s)        Certificate of Pharmaceutical Product – Tsh. 50,000;

(t)         Inspection of new food processing facilities – small – Tsh. 100,000; (u)           Disposal certificates;

(v)        Health certificates – Tsh. 50,000; and

(w)       Trade fair fees – Tsh. 200,000.

(ii)       Cotton Board:

(a)        Uhuru touch contribution – Tsh. 450,000; and

(b)        Fee for District Council to deliberate on cotton buyers – Tsh. 250,000;

(iii)       Tea Board:

Fire and rescue levy – Tsh. 800,000.

(iv)       Coffee Board:

Cherry Processing License – USD 250

(v)      Cashewnut Board:

(a)        Cooperative Union levy – Tsh. 20/- per kg;

(b)        Transportation Fee – Tsh. 50/- per kg;

(c)        Task Force on Various Issues – Tsh. 10/- per kg;

(d)        Storekeeper costs – Tsh. 10/- per kg.

It is the expectation of the business community that the Tanzanian Government will continue to review the fees and levies charged by all agencies; regulatory authorities and local government authorities in order to lower the cost of doing business and improve business environment.

Turkey Relations with Uganda Important

DSC_7085Turkish President Recep Tayyip Erdogan is visiting Uganda this week on the first leg of his two county east African trip. He will be visiting Kenya after he leaves Uganda on June 1.

The Turkish leader’s visit is an important one on many fronts not least of all that it is tacit approval of President Yoweri Museveni recent election victory. It is also an endorsement of Uganda as a important political and economic ally in the region.

The Uganda National Chamber of Commerce and Industry (UNCCI) has been ahead of the curve in recognising the importance of Turkey as a useful international partner. In December 2012 The Turkish-Uganda business council was establish, to facilitate the exchange of information between eth two countries’ business communities.

This followed two years later by a high powered business delegation. The members of that delegation had interests in agriculture, import and Export, transport, energy, real estate and construction.

Some useful contacts were made during the trip, which contacts have continued to pay rich dividends. Bilateral trade volumes stand at about $20m (sh70b) and Turkish companies that have set have invested more than $150m to set up enterprises in textiles, construction, education and electronic cables among others.

Turkey is a very useful partner for Uganda to have. For starters Turkey’s economy stands at $750b or more than six times the size of the East African Community(EAC). The $9,600 GDP per capita suggests that there is a huge market of the countries products and services. There is great scope for technology transfer as they have made some determined strides in the areas of the research and development in pharmaceuticals, agro processing and light industry.

But Turkey is not alone, or at least not very much longer. Turkey is in talks to enter the European Union (EU) whose economy is second only to eth United States. There have been several sticking points but one can assume that it is only a matter of time before Turkey takes its rightful place in the EU.

This may bring immeasurable benefits to our country and businessmen. While Turkey will adopt the protocols required to ascend to the membership of the EU, it would be fair to expect that our prior cordial relations will help our businessmen make more determined inroads into the EU because of the mutually favorable relations that will have been nurtured between the two countries.

But Turkey is also at the confluence of Europe and the Arab world so it can serve as a conduit for our products and services into one of the most populous regions on the planet.

Given the above it goes without saying that Turkey is and can be an important ally of Uganda.

Uganda’s most pressing challenge is job creation. If we can facilitate our businessmen’s entrance into markets like Turkey, it follows that our factories and companies would have to ramp up their output to meet the new demand.

We will need thousands even tens of thousands of jobs to be created every year In coming years if we are to more equitably distribute the economic growth but also maintain national stability.

There is still a lot of latent demand locally and regionally that our businessmen still have to tap into but it would not hurt to open up new markets further abroad as well.

We are glad for the visit of the President Erdogan and we hope and will work to make his trip a mutually fruitful and productive one.

The author if the President of the UNCCI

Steps to Register a Company In Uganda

# Process Responsible Body Charges Requirements
1 Company name Reservation with Uganda Registration Service Bureau(URSB) URSB Ug.X 20,000 &  Ug.X 2,200 bank fee Company name assessment forms
2 Membership Subscription with Uganda National chamber of Commerce(UNCCI) UNCCI Annual subscription as per category

Associate =1,100,000/-

Gold = 510,000/-

Silver = 260,000/-

-Certified Name Reservation Form

-Business Case

-Passport copy & Photo of one of the directors

3 Company Registration to obtain the Certificate of Incorporation URSB – Registration fees: UGX 20,000

– Stamp duty: 0.5 % of the share capital

– Stamp Duty on Memorandum & Articles of Association: UGX 35,000

– Filing Fees: UGX 25,000

– Filing Form A3: UGX 20,000

– Filing Form 7/20: UGX 20,000

– Filing Form A9: UGX 20,000

-Filing Form A2: UGX 10,000

– -Company Books
– Memorandum of Agreement
– Articles of Association
– Declaration of companies.
– Form A1:
– Form A2:- Form A3:- Form 7:

– Form 9A:
– Company Resolutions:

4 Register for a Tax Identification Number (TIN) with Uganda Revenue Authority (URA). URA No charges. The TIN application can be completed online on the website URA: ww.ura.go.ug. Personal inquiry form for each director.
5 Register for VAT with Uganda Revenue Authority (URA) if the company has a threshold of over 50,000,000 shillings. URA No charges. Statement of Nominal capital Form that states share capital, number and class of shares, value of the shares.
6 Register  for the trading license with the Municipal Authority where the company premises are located Municipal Authority eg. Kampala Capital City Authority(KCCA) Charges depend on the nature of business and grade. Its assessed by Municipal Authority / KCCA – Memorandum and articles of association,

– Form 7: the name of the directors,

– Certificate of incorporation,

– Lease/ Tenancy agreement.

7 Register with the National Social Security Fund (NSSF). All employers with more than 5 employees are obliged to pay an NSSF contribution of 10% to their employees. NSSF No charges

 

Please don’t hesitate to contact us in case you need further assistance.

 

Business related Laws Enacted by Parliament of Uganda in Five Years (2011- 2016)

Date Passed Title Of Bill
03/03/16 The Uganda Development Cooperation Bill,2015
01/03/16 The Capital Markets Authority (Amendment) Bill,2015
06/01/16 The Financial Institutions (Amendment) Bill 2015
12/11/15 The Lotteries And Gaming Bill,2013
1/07/15 The Public Private Partnership Bill,2014
27/05/15 The East African Development Bank (Amendment) Bill,2015
27/05/15 The Income Tax (Amendment) Bill,2015
13/05/15 The Excise Duty (Amendment) Bill,2015
12/05/15 The Finance Bill,2015
06/05/15 The Value Added Tax (Amendment) Bill,2015
30/04/15 The Business Licenses (Miscellaneous Repeals) Bill,2015
26/03/15 The Hotel & Tourism Training Institute Bill,2013
10/03/15 The Trade (Licensing) (Amendment) Bill,2012
12/11/14 The Plant Protection And Health Bill,2010
08/10/14 The Excise Duty Bill,2013
08/10/14 The Finance Bill 2014
23/09/14 The Value Added Tax (Amendment) Bill,2014
16/09/14 The Tax Procedures Code Bill,2014
15/09/14 The Income Tax (Amendment) Bill,2014
15/09/14 The Stamps Duty Bill,2013
17/07/14 Public Private Partnership Bill,2012
05/12/13 The Free Zones Bill,2012
19/09/13 The Excise Tariff (Amendment) Bill,2013
19/09/13 The Value Added Tax (Amendment) Bill,2013
19/09/13 The Income Tax (Amendment) Bill,2013
18/09/13 The Finance Bill,2013
18/09/13 The East African Excise Management (Amendment) Bill,2013
21/08/13 The Industrial Property  Bill,2009
10/07/13 The Anti-Money Laundering Bill,2009
22/05/13 The Building Control Bill 2012
21/02/13 The Petroleum (Refining, Gas Processing And Conversion, Transportation And Storage) Bill,2012
06/02/13 The Geographical Indications Bill,2008
07/12/12 The Petroleum (Exploration, Development And Production) Bill,2012
22/03/12 The Companies Bill,2009
15/09/12 The Appropriations Bill,2011
09/09/11 The Income Tax (Amendment) Bill,2011
07/09/11 The Value Added Tax (Amendment)Bill,2011
07/09/11 Stamps (Amendment) Bill,2011