Chinese investors at a workshop organized by the Chinese Union of Uganda
HABARI DAILY I Kampala, Uganda I Uganda has one of the most liberal investment laws where every one can flourish, including the Chinese who have chosen to establish businesses in the country, an official has said.
Asadu Kigozi Kisitu the Uganda Revenue Authority (URA) Acting Commission in charge of Customs department, said the Chinese can engage in import and export business without any harassment.
“Uganda has some of the most liberal tax policies in East Africa. You may face difficulties because you are not well versed with our laws and regulations,” he said, during a seminar between URA officials and Chinese investors, held at Nanjing Restaurant in Kololo, Kampala.
The meeting, which was organized by the Chinese Union of Uganda, saw over 50 Chinese investors take part.
Kisitu said although URA is just a policy implantation body that oversees the Government tax policies that have been passed by parliament and assented to by the President, it is ready to intervene and offer guidance where necessary.
“Whenever you are not content, there is always room for you to appeal. Discussions can be held between the business sector and government, which can lead to improvements,” he further told members of the Chinese business community.
He advised the Chinese investors for any discussions on tax can only commence if they do some research and present a paper with concrete facts on the same.
The engagement focused on the government’s tax structure, and URA officials taught them on customs valuations, clearance and inspection, exemptions, and tax enforcement operations.
Trade between China and Uganda is skewed in favor of the former. As a result, China exports much more than it imports from Uganda.
Paul Zhang, the President of the Chinese Union of Uganda called upon URA to occasionally meet the investors, teach and engage them in order to increase on tax compliance.
He said there are now more than 300 Chinese investors in Uganda. But still, a sizable number of them are newcomers.
He said most of these investors lack knowledge about the laws of Uganda. “They even lack the basic knowledge about Ugandan laws. But we need tax education so that they can operate seamlessly and create employment for Ugandan youth.”
Zhang said the Chinese investors have established more than 200 factories in Uganda, and as a result created over 200,000 jobs.
During the last 5 years the exports of China to Uganda have increased at an annualized rate of 0.76%, from $1.04b in 2017 to $1.08b in 2022.
In 2022, China exported $1.08b to Uganda, while Uganda exported $54 million to China. The main products China exported to Uganda were broadcasting equipment, rubber footwear, and video displays. Uganda’s main exports to China were other oily seeds, veneer sheets, and coffee.
