MP Nyendwoha says the government imposed a 25% tax on imported industrial sugar to boost the market for Ugandan industrial sugar.
The Member of Parliament representing Bujenje County, Kenneth Kiiza Nyendwoha, has disclosed that the government of Uganda imposed a 25% tax on imported industrial sugar to boost the market for locally manufactured industrial sugar.
According to Nyendwoha, the companies in the country have been importing industrial sugar from other countries, decrying that though Kinyara Sugar Ltd. started manufacturing it, they are still struggling to get ready to market locally.
On the same note, he said the government imposed a 25% tax to protect and boost the market for locally produced industrial sugar.
The politician also asserted that they are in negotiations with other companies that are still importing industrial sugar from other countries to buy from Kinyara Sugar Ltd.
In July this year, Kinyara Sugar Ltd. reported that they were stuck with 5,600 metric tons of refined industrial sugar after failing to get demand from the local market.
The company’s communications manager, Aldan Walukamba, said that as much as their refined industrial sugar has been satisfied in Europe, Belgium, the United Kingdom, the United Arab Emirates, India, and South Africa, where it is exported, there is a need to concentrate on serving local markets.
Refined industrial sugar is used by manufacturers as a raw material to produce confectionaries like cakes and sweets; in the pharmaceutical industry for sugar coating tablets and syrups; and in beverages for the production of both alcoholic and non-alcoholic beverages.
It should be noted that in the whole of East Africa, it is only Kinyara Sugar Ltd. that is involved in the production of refined sugar.