The government of Uganda has removed the Value added Tax (VAT) on imported rice from Tanzania, with effect from 27th July 2022.
The development comes two weeks after Uganda’s President Yoweri Museveni appealed to all the seven East African Community (EAC) member states to remove all non-tariff barriers, saying they were hampering economic integration and development in the region.
The secretary general of Kampala Rice Traders Association, Mr Robert Ssentongo, commended the government for scrapping VAT of USh180,000 ($47.09) per tonne of rice, which he said was affecting traders.
According to statistics from the Ministry of trade, Uganda consumes about 300,000 tonnes of rice a year and this demand has largely been supplemented by imported rice.
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