Cut taxes to grow manufacturing sector, govt told

The Executive Chairman Crown Beverages Limited Mr Amos Nzeyi (L) looks on as the CEO Mr Paddy Muramiirah displays a bottle of Aquafina during the launch on November 17, 2022. Photo/ Paul Adude 

What you need to know:

  • Mr Nzeyi said whereas the production and tax revenue numbers were increasing government decided to tax the manufacturing sector as if it was penalizing manufacturers

The Executive Chairman Crown Beverages Limited (CBL) Mr Amos Nzeyi has appealed to government to cut taxes imposed on the manufacturing sector in order to reduce on cost of production and allow growth of the sector in the country.

“Since October last year (2021) to October this year we have paid Uganda Revenue Authority (URA) Shs185 billion in taxes, in the previous year (2020-2021) we paid Shs175 billion. Government has to consider us because the taxes are breaking our backs and they are denying our people jobs” he said.
Mr Nzeyi made the remarks during the launch of Aquafina enriched drinking water brand at the new Crown Beverages Limited $76 million (Shs 284 billion) plant in Kakungulu, Sisa- Wakiso district.

“We want to have a friendly taxation. If we can be partners with government and then they make money through volumes like we are doing, this Aquafina is supposed to be sold at Shs 2,000 but we cut it to Shs1,000 because we want to get volumes, we have reduced our present water Nivarna by 50 percent, in order to make money through volumes, if government did the same and reduced taxes, it would make money through volumes, it would be good” he said.
Mr Nzeyi said whereas the production and tax revenue numbers were increasing government decided to tax the manufacturing sector as if it was penalizing manufacturers.

“Excise duty was at 13percent, we agreed with government that they reduce each year by one percent which happened, they reduced in one year one percent and it came to 12percent but after sometime we were expecting it to be 11 percent instead when they went to read the budget it became 15 percent,” he said.

Mr Nzeyi said the high taxes have impeded on the growth of the country’s manufacturing sector.
“Our expansion in other areas of food production that we are going into is not coming forward because of low growth in our business. Had it not been issues of high taxes, definitely it would expedite the investment creating more jobs. The taxes are not are not allowing us to move as fast as we should,” he said.

The CEO of Crown Beverages Mr Paddy Muramiirah said Aquafina, the world class quality brand is expertly processed ensuring only the essential elements and minerals remain, resulting in a clear, pure & perfect tasting water.
“As a country in Africa, we are going to be the third following Nigeria and Egypt which was the first one to launch the international water brand. It’s not an easy water to make, previously, we qualified to make the CSD’s (Carbonated soft drinks) but didn’t qualify to make Aquafina. Aquafina is made in a way that there must be assurances that it is a high quality water” he said.

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