Manufacturers reveal collaboration priorities with government to foster tax, standards compliance for economic growth

The government has expressed commitment to address arising concerns of the manufacturing sector which are hindering their full contribution to the development of Uganda including issues of changing tax regimes, high-interest rates, promotion of import substitution, export promotion, and cost of production among others.

The manufacturers have interfaced with government departments during a post-budget symposium organized by Uganda Manufacturers Association (UMA) with support from NCBA Bank, Uganda Insurance Association, and others.

During the symposium, The Chairman UMA told the government representatives that if the manufacturing sector has to immensely contribute to economic growth during the budget implementation, there is a need to address the concerns of the sector to allow it to have a full force investment to foster development.

The Chairman said that among the issues affecting them is the dynamic tax regime, which he says changes over a short time hampering proper investment planning. He said that there is a need to ease the implementation of the pivoc regime to allow good reach factories seamlessly and reduce the cost of power.

The Chairman in above picture added that manufacturers need tax reforms that will foster compliance and end endless audits.

“We need a sustainable working relationship with Uganda Revenue Authority (URA) to have tax regimes that foster compliance, we look forward to URA initiating measures to allow willing tax payment. The Dynamic tax regimes are impairing investment planning” he said

The theme of the post-budget symposium held on Tuesday 18^th July at Hotel Africana was: Positioning the manufacturing sector to implement objectives of the National Budget 22/23”

The panel discussion involved issues like the role of key Government Agencies like UNBS, URA, Ministry of Finance, Planning and economic development (MoFPED), Uganda Insurance Association, and others are playing in facilitating the Manufacturers to take advantage of opportunities in emerging Regional and Continental Meetings.

The Minister of State for Planning in MoFPED, Hon David Bahati urged manufacturers to take advantage of the cheap credit for Uganda Development Bank which he said has been capitalized to foster the growth of business with low-interest rates.

He said while the government is still committed to the liberalization of the economy for manufacturers, it also ensures a flexible tax regime sustained to ease business.

“Important to recognize is that if supported, the manufacturing sector can grow the economy. Due to the liberation of the economy manufacturers are free to invest and withdraw. We have capitalized UDB with over 481 billion for access at low interest rate of 12%” he said

 Commissioner General URA John Musinguzi pictured above acknowledged that the manufacturing sector is essential to the growth of other sectors and Uganda as a whole, urged manufacturers to utilize the voluntary disclosure window and declare any tax matters that arise to benefit from the wave-offs for penalties, an interest which he said, inconvenience taxpayers.

“I want to take this opportunity to thank manufacturers who are our second tax payers, contributing almost 5 trillion in the just concluded financial year. Therefore our partnership should mutually benefit both @GovUganda and manufacturers.

Responding to a query of long-term audits, the CG said that the audits usually last for up to 3 years, he, however, said in cases of fraud detection it calls for investigative audits that can last to 10 years.

“URA recommends and practices audits of three-year audits, in case fraud is involved, there is a backward investigation but these are limited cases. Utilize the voluntary discloser window. We can take what’s declared, wave off penalties” he said

The Executive Director of Public Procurement and Disposal of Assets (PPDA) Benson Turamye in above picture told the manufacturers to register to the e-GP platform to benefit from the business opportunities from the government.

"Being on the E-Government Procurement system  is to avail you as a manufacturer with access to Government Entities' procurement plans which enables you to plan ahead of time. My role is to provide a policy and a regulatory framework that will enable you to benefit from the 65% of the Budget that goes to Procurement” he said

He said that Government expenditure through public procurement has strict reservations, and priority for all products and inputs manufactured in Uganda as highlighted

That way, you (the Manufacturers) will be able to regain the taxes they pay."