Morrison Rwakakamba, the chairperson of the Uganda Investment Authority (UIA) board, extended an invitation to importers of agricultural machinery facing challenges in clearing their equipment through customs. Importers encountering hurdles, particularly related to taxes imposed on value addition machinery, including conveyor belts, were urged to collaborate with the UIA for smoother clearance processes.
Rwakakamba’s counsel comes in response to grievances expressed by importers who highlighted difficulties in navigating tax-related issues on their equipment. Notably, agricultural machinery is exempt from certain taxes, and the UIA aims to mediate between importers and relevant authorities to address these concerns.
The UIA board chair emphasized the importance of importers working in tandem with the UIA, allowing the authority to engage with both the finance ministry and the Uganda Revenue Authority (URA) on their behalf. This collaborative effort seeks to streamline the clearance of agricultural machinery, ensuring adherence to tax exemptions.
While offering this advice, Rwakakamba stressed the significance of proper documentation during the procurement process. He clarified that presenting documentation as a unified package is crucial for availing the full benefits of tax exemptions. Separating documents could lead to individual items being taxed as distinct machinery, potentially complicating the clearance process.
Drawing from past experiences, Rwakakamba provided an example of solar systems, highlighting that prior to engagements with URA, each component was subject to different taxes. Through ongoing dialogues, a consolidated approach was established, defining a specific product, the solar kit, for taxation purposes. He underscored the need for continuous communication and awareness-building with URA and the East African Community (EAC).
Rwakakamba concluded by encouraging importers to approach the UIA whenever challenges arise.
