1. EXPORT INCENTIVES
The objective of export incentives in Uganda, is to compensate
exporters for the infrastructural inadequacies and the cost
of bureacratic inertia.
The incentives are also intended to level the playing field
as much as possible to render Uganda's exports competitive.
Currently the following incentives are operational;
1.1 Foreign Exchange Liberalization
The foreign exchange regime is fully liberalized and exporters
are entitled to retain 100% of their foreign exchange earnings
accruing from their export transactions.
(Contact Bank of Uganda
and commercial banks)
1.2 Duty and Vat exemptions
There are no taxes charged on exports (zero rated). This
is meant to reduce costs for the exporters and to make exports
from Uganda more competitive
(Contact Uganda Revenue
Authority)
1.3 Market Access
The government of Uganda strongly supports global economic
integration as it increases volume of trade as well as offers
other economic opportunities. Because of our membership,
Uganda’s exports qualify for preferential tariff rates
in COMESA, EAC. In addition Ugandan products enter the European
Union and USA markets duty and quota free under the Cotonou
Agreement (ACP – EU) and the African Growth and Opportunity
Act (AGOA) initiatives respectively.
(Contact Uganda
Export Promotion Board)
1.4 Value Added Tax (VAT) on Exports
All exports of goods and services are zero rated for VAT.
However, exporters are required to be VAT registered. This
enables them to re-claim VAT expended on all inputs used
in the process of producing and processing exports.
(Contact Uganda Revenue
Authority)
1.5 Duty Drawback
The rationale for duty drawback is to enable manufacturers
and other exporters to compete in foreign markets without
the handicap of including costs of imported inputs in the
final export price, the duty paid on imported inputs. This
allows exports to draw back up to 100% duties paid on materials
inputs imported to produce for export.
(Contact Uganda Revenue
Authority)
1.6 Manufacturing under Bond
This scheme allows manufacturers to seek custom license
to hold and use imported raw materials intended for manufacture
for export in secured places without payment of taxes. It
makes available working capital, which would have been tied
up through paying duties immediately after importation.
(Contact Uganda Revenue
Authority)
1.7 Other incentives
are available under the Investment Code as administered
under the Income Tax Act 1997, by Uganda Revenue Authority
for export oriented investment projects.
(Contact Uganda Revenue
Authority)
