NATIONAL | The State Minister for Finance, Henry Musasizi, has denied allegations that the government plans to introduce a new tax on coffee farmers based on plantation acreage.
Bukomansimbi South MP Solo Kayemba told Parliament that the claims were sparked by a recent visit from Uganda Revenue Authority (URA) officials to his constituency, where farmers were reportedly informed about the proposed tax.
Musasizi dismissed the allegations, labelling those spreading the information as "masqueraders."
He emphasized that there are no plans to introduce a new tax on coffee farmers.
Musasizi says the Ministry of Agriculture is working on a National Coffee Traceability System to ensure compliance with international regulations, particularly the European Union's Deforestation Regulation (EUDR).
The system aims to promote environmentally responsible farming practices and provide better planning tools for the coffee sector.
The Minister also clarified that farmer registration is not about imposing taxes but rather about building a comprehensive national database to support compliance with international regulations.
The registration process will help government agencies and exporters accurately track coffee origins and meet sustainability standards.
Uganda's coffee industry is a significant contributor to the country's economy, accounting for approximately 14% of national revenue.
The sector has seen growth, with coffee exports reaching a record-breaking $1.14 billion in 2023/24.
The government and UCDA are working to maintain the industry's competitiveness and sustainability.