Manufacturers draw recovery measures, seek govt support
Demand: Manufactures want government to relax tax and mandatory contributory schemes. PHOTO BY EDGAR R. BATTE
After collecting views from about 1,400 members, manufacturers under Uganda Manufacturers Association (UMA), have drawn a raft of proposals that they say will help to resuscitate the sector from the effects of Covid-19.
The measures, among them, relaxing access terms to raw material, settlement of domestic arrears, loans restructuring and refund of value added tax and withholding tax, UMA says, will help to lubricate the economy as well as allow businesses to have sufficient cash flow.
Other measures, according to UMA will include, lowering the Central Bank Rate to stimulate private sector credit, promote the Buy Uganda Build Uganda policy, adjust electricity tariffs throughout the year and suspending pay as you earn (PAYE) and NSSF mandatory contributions.
However, UMA also noted that government and manufacturers must focus on the opportunities that have been availed as a result of Covid-19.
Among these, UMA said, is the export sector, especially the food sector, and other manufactured goods hat government should support to create sufficient export potential within the region.
Among the goods are sugar, milk, plastics, stationery, textiles, foods and beverages, fats and oils, soaps and foam products, some of which have been blocked by countries in the region. For instance, milk, sugar and poultry exports have been blocked by both Kenya and Tanzania.
Manufacturers also want the Ministry of Finance to liase with URA to ease the requirements for filing final accounts by extending the due date to September 30, 2020 because many of the members cannot audit their businesses.
