Roofings wants government to impose 25% Tariff on imported bars

Kampala- Government has been urged to institute a 25 per cent Common External Tariff on importation of reinforced bars (iron bars).

The proposal was put forward by East Africa’s steel and iron manufacturing giant Roofings Group, saying this will protect local industries from cheap and substandard imports.

The tariff proposal was made during a tour by Parliament’s committee on Tourism, Trade and Industry at the group’s plant located at the business park in Namanve.

The 25 per cent tariff will match that already imposed by Kenya in its 2014/15 budget after her steel mills had started closing shop due to unfair competition from cheaper imported iron and steel products.

“It is our request that Parliament addresses this concern with urgency as we are facing increased deterioration of the market which may see the plant downsize further or closed. This is the case with other factories producing reinforced Bars in Uganda,” said Dr Sikander Lalani, the Group chairman and managing director.

Dr Martin Francis Kyeyune, the Group finance and economic advisor said much as the tariff was not provided for in the 2014/15 Budget, the company faced imminent scaling back if nothing was done. “We hope that it can be addressed within this financial year or else we face downsizing,”
The Group chief finance officer, Mr Amirali Kazani, said that “If there are such measures (Common External Tariff) in place, it will give us more confidence to produce even more quality products.”
Without the 25 per cent duty, Mr Kazani said the market is being flooded with cheap but poor quality imported steel products. Roofings currently sells 75 per cent of its produce in Uganda.
The rest is exported to neighbouring Democratic Republic of Congo and South Sudan whose markets have been affected by instability, and this is affecting the company’s sales.

[email protected]