SMEs want taxes slashed to compete favourably with foreign companies
Small and Medium Enterprises (SMEs) owners, have called on government to slash taxes levied on their products, to enable them reduce prices and compete favorably with foreign giant companies.
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The call was made on Thursday, at Hotel Africana, in Kampala during a meeting to validate challenges facing SMEs in Uganda.
“There is need to protect local SMEs by reducing taxes on them and to desist from criminalising informal and formal traders, if Uganda is to compete with foreign companies”, said Humphrey Mukasa, Managing Director Agri Point.
He expressed dismay at the manner in which Kampala City Law Enforcement officers and tax collectors treat traders in down town Kampala, when they are looking for taxes.
“These KCCA Law Enforcers and tax collectors should treat us humanely, because majority SMEs owners need sensitisation on tax payment obligation but not confiscation of their goods and locking up of their business premises”, he added.
Cleopas Ndorere, Ministry of Trade, Industry and Cooperatives representative at the meeting blamed some SMEs proprietors for not observing good practices.
He said some bread and juice manufacturing SMEs operate from their residential houses, without books of accounts and flood their products on the streets of Kampala, which casts doubt on the hygiene and safety of such products.
He advised SMEs proprietors, to endeavour register their businesses with the Uganda Registration Services Bureau (URSB) and get Certification of their products from Uganda National Bureau of Standards (UNBS).
He said Local Governments should levy a small fee on SMEs to enable them grow.
“Give new SMEs a grace period of four years and train District Commercial Officers to help SMEs register with URSB”, he said.
The Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) organized the meeting.
SEATINI Uganda Chief Executive Director, Amb. Nathan Irumba reiterated the need for SMEs engaged in Agri- business to make use of storage facilities, so that they don’t incur loses brought about by destruction of their crops by weevils or rodents.
“Uganda is endowed with many Agriculture products and you should take this advantage to add value and brand as many products as possible”, he said.
