The Uganda Revenue Authority has denied reports that sugar from Kakira Sugar Works meant for export to Tanzania had been rejected because it was contaminated.
Reacting to a story that run in one of the daily newspaper, Vincent Sseruma, the public and coporate affairs manager, said Kakira had decided to bring back the sugar because of a dispute over payment of taxes.
It had been reported that 600 tonnes of Sugar from Kakira had been rejected in Kenya and Tanzania because of poor quality.
Sseruma said Kakira decided to re-import the sugar after Tanzanian authorities insisted that it pays 25% import duty.
Currently the sugar consignment is parked at Jinja pier until both governments come to an understanding.