Government Drops Taxes On Sweets

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Government Drops Taxes On Sweets

Government has removed the excise duty tax from the confectioneries such as sweets, chewing gum among others.

Presenting the excise duty amendment bill to the finance committee of Parliament the state minister for finance David Bahati said that government has decided to remove the tax to allow fair competition.

The director economic affairs in the ministry of finance Kaggwa Moses said that ever since they imposed a tax of 20% on confectioneries in this ending financial year there has been unfair competition as some people have been smuggling them into the country.

He adds that its easy for one to smuggle a packed of sweets, chocolate among others out competing those manufacturing home.

During the last financial year budget process the health minister Dr Jane Ruth Aceng and her junior minister Sarah Opendi put up a spirited fight for government to maintain the tax at 20% saying that these are made with a lot of sugar which is not good for the health of Ugandans.

Meanwhile government has also made amendment and reduced tax on the soft drinks by 1%.

During the last financial year budget Parliament had recommended that tax on soft drinks be reduced from 13% to 10% to allow fair competition.

The state minister for finance David Bahati said that government will reduce the tax on soft drinks in a phased manner up 10% as proposed by Parliament.

He noted that if the tax on soft drinks is reduced once to 10% from 13%, this will affect the economy.

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