KAMPALA, UGANDA – In a strategic move to address critical tax-related challenges impacting local industry, the Uganda Manufacturers Association (UMA), through its Economic & Business Policy Committee, has announced plans to conduct a series of tax amendment clinics across the country. The initiative will focus on the burden of excise duties on locally manufactured goods and the competitive implications of recent regional tax policy changes.

This proactive engagement comes after a key committee meeting where members resolved to deepen their advocacy for a fairer and more harmonized tax environment. The clinics, to be held in the central, eastern, and western regions of Uganda, will serve as a platform to educate manufacturers and gather firsthand evidence on how tax policies are affecting their operations, competitiveness, and investment plans.

The move underscores a growing concern among Ugandan producers that without strategic interventions, tax policies could hinder rather than support the nation’s industrial growth agenda.

Two primary issues are at the forefront of this initiative:

1. Addressing the Burden of Local Excise Duties

A key focus of the clinics will be the structure and application of excise duties on goods produced within Uganda. Manufacturers have long argued that high excise duties on certain products can make them more expensive than similar imported goods, effectively disadvantaging local production and undermining the “Buy Uganda, Build Uganda” (BUBU) policy. The engagement will seek to:

• Analyze the impact of current excise duty rates on production costs and consumer prices.
• Gather data from affected manufacturers, including major players like Nile Breweries Ltd (NBL), to build a robust, evidence-based case for tax reform.
• Advocate for an excise duty structure that promotes local value addition and ensures fair competition.

2. Analyzing the Impact of Regional Tax Changes

UMA is also taking a vigilant, region-wide perspective by closely analyzing the implications of Tanzania’s recently amended Finance Act. When an East African Community (EAC) partner state makes unilateral changes to its tax laws, it can create an unlevel playing field, impacting trade flows and investment decisions across the region. For instance, a change in taxes on raw materials or finished goods in a neighboring country can directly affect the competitiveness of Ugandan products.

The clinics will help manufacturers understand these regional dynamics and allow UMA to develop strategies to mitigate negative impacts and advocate for a more coordinated approach to tax policy within the EAC.

The ultimate goal, as emphasized by the committee, is to push for harmonized tax policies across the East African region. A predictable and aligned tax regime is fundamental for creating a true common market where goods can move freely and businesses can compete on a fair basis.

Through this initiative, UMA reaffirms its commitment to data-driven policy advocacy. By empowering its members with knowledge and gathering their direct feedback, the association is strengthening its voice to champion a competitive, business-friendly environment that is essential for sustainable industrial development in Uganda and the wider East African Community.