Tanzania Slaps 25% Import Tax on Sugar from Uganda

Despite Uganda being signed to the common market protocol, Ugandan businesses are not benefiting greatly from it especially on the side of Tanzania.

This comes at a time when over 600 metric tones of sugar manufactured by Kakira Sugar Works was slapped with a 25% import duty on its way to Tanzania forcing Kakira to retrieve it.

Vincent Sseruma, the public and cooperate affairs manager at Uganda Revenue Authority, refuted rumours that the sugar was initially exported to Tanzania after being banned in Kenya where it was also denied and brought to Uganda.

Sseruma says, “The sugar currently at the Jinja pier is Ugandan, it was not made from any other country."

Sseruma explains that Tanzania disregarded the common market protocol and asked Kakira sugar works to pay a tax of 25% import duty. Kakira Sugar Works board chairman Jim Kabeho Mwine confirms this.

Sseruma says URA went as far as to write to Tanzania Customs but have not not yet received a response.

Currently the consignment is parked at Jinja pier until both governments come to the bottom of the situation.

Sseruma however denied any knowledge of sugar containing copper particles being imported into Uganda from Kenya.