By Flavia Ajok
The Member of Parliament representing Bujenje County, Kenneth Kiiza Nyendwoha, has disclosed that the government of Uganda imposed a 25% tax on imported industrial sugar to boost the market for locally manufactured industrial sugar.
According to Nyendwoha, the sugar companies in the country have been importing industrial sugar from other countries, adding that although Kinyara Sugar limited started manufacturing industrial sugar, the company is still struggling to market the new product locally.
He adds that the new tax will protect and boost the market for locally produced industrial sugar.
The politician also asserted that they are in negotiations with other companies that are still importing industrial sugar from other countries to buy from Kinyara Sugar Ltd.
In July this year, Kinyara Sugar Ltd. reported that it was stuck with 5,600 metric tons of refined industrial sugar after failing to get demand from the local market.
The company’s communications manager, Aldon Walukamba, says that much as their refined industrial sugar has been satisfied in Europe, Belgium, the United Kingdom, the United Arab Emirates, India, and South Africa, where it is exported, there is need to concentrate on serving local markets.
Refined industrial sugar is used by manufacturers as a raw material to produce confectionaries like cakes and sweets; in the pharmaceutical industry for sugarcoating tablets and syrups; and in beverages for the production of both alcoholic and non-alcoholic beverages.
It should be noted that only Kinyara Sugar Ltd produces refined sugar in East Africa.
