Sugarcane growers have petitioned Speaker Rebecca Kadaga demanding exemption from paying newly imposed 1% tax on all agricultural produce.
Under their umbrella- the Uganda National Association of Sugarcane Growers, the group on Tuesday petitioned Speaker Kadaga, saying that the newly introduced withholding tax on their sales is likely to hike sugar prices.
In May, Parliament amended the Income Tax Act and levied 1% tax on all agricultural produce. The sugarcane farmers in their petition have demanded that they are exempted from this new tax because “sugarcane growing is a risky venture.”
“The aim of exempting farmers from this will not only reduce the general cost of production but also reduce prices of sugar that we consume. Sugarcane is a political crop because of the number of people involved,” Isan Budugo, the lead petitioner said.
Apparently, the cost of growing and delivering a metric ton of sugarcane ranges to any factory is Shs130,000 minimum price and that to survive, farmers need to be paid Shs175,000.
“The industry has faced many challenges including low prices due to lack of order. This has made it very difficult for us to move forward. We have been negotiating with millers to increase the prices for the whole of last year but millers are not interested in increasing the prices. Kakira dropped the sugarcan price from Shs175,000 to Shs128,000. SCOUL, Kamuli, Mayuge are giving Shs130,000 per ton and Kinyara Shs100,000,” Budugo said.
The Sugarcane growers also called on Parliament to expedite the Sugar Bill, 2016 whose passing into law hit a snug over allegations of bribery at the Tourism and Trade Committee of Parliament that was scrutinizing the Bill.
Speaker Kadaga vowed to address their need in an extensive manner by stressing the need for an Agricultural Bank. She vowed to convene a joint meeting between farmers and sector ministers mainly Trade, Agriculture and Finance on the matter.
