President Yoweri Museveni has cautioned government officials against imposing direct taxes on investors, especially manufacturers.
He advised the taxman to look for other indirect ways of taxing such as the consumer level, or the pay-as-you-earn for the workers employed by the companies, as opposed to direct taxation.
The president, who was speaking at the commissioning of the newly established Harris International factory in Kawempe, Tula, yesterday, further urged Ugandans to cooperate with foreign Investors in a bid to boost manufacturing in the country.
“This is now a warning to the government people including finance. I long ago told everybody concerned that what we lack in Uganda is manufacturing. We already have peace and infrastructure but manufacturing is the one we need most. Therefore, if somebody is in manufacturing, I don’t want you to disturb him with direct taxes because they are not very crucial for us,” Museveni said.
The over 100 million-dollar factory is a branch of Harris International, a company known for its food and beverage products, such as Riham sod, among others.