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Kampala, Uganda | THE INDEPENDENT | Parliament’s Finance Committee has endorsed a government proposal to exempt excise duty on raw materials used in the manufacture of sanitary pads.
According to the committee, the exemption is meant to reduce the cost of sanitary pads and offer relief to girls especially those in rural schools who miss or drop out of school because they cannot afford the sanitary wear. A packet of sanitary pads cost an average of 3000 Shillings on the market which is slightly expensive for girls in rural settings.
As a result, many girls use tree leaves, old clothes, toilet paper, newspapers, cotton wool and rags to protect themselves from leaks while others are isolated and advised to sit in the sand for days until their menstrual flow stops. Under such circumstances, girls have been forced to drop out of school to avoid embarrassment.
A study on the status of menstrual health management published last year by the Ministry of Education indicated that about 23 percent of Ugandan girls in the age group of 12-18 drop out of school when they begin menstruation.
Finance Committee Chairperson Henry Musasizi says that making pads affordable will save young girls from the embarrassment of leaks during their menstruating period, improve their menstrual hygiene and restore the dignity and wellbeing of women and girl.
Meanwhile, the committee has also approved exemptions on fruit juice and vegetable juice made from of least 30 percent of pulp from fruit and vegetables grown in Uganda. The government had proposed to reduce the rate of excise duty on fruit and vegetable juice made from at least 30 percent pulp from fruit grown in Ugandan from 300 Shillings per litre to 250 Shillings per litre.
“Although government indicates that this measure is expected to lead to a loss of Shillings 0.15 billion, it is a welcomed measure since it will directly support the fruit and vegetables farmers in Uganda” says Musasizi in his report.
Also approved is a government proposal to reduce the rate of undenatured spirits made from locally produced raw materials from 2000 to 1,500 Shillings per litre.
The committee also recommends to parliament to exempt inputs and raw materials for the manufacture of tyres, footwear, mattress or toothpaste for a person who meets the capital threshold of investing USD 300,000 in urban areas or USD 150,000 in rural areas in case of a citizen of Uganda and USD 10 million for the case of a foreigner.
The government had instead proposed exemption of inputs and raw materials for the manufacture of tyres, footwear, mattress or toothpaste for a person who meets the capital threshold of investing USD1 million in case of a citizen and USD 10 million for the case of a foreigner.
Musasizi says that the committee recommendation if met could extend incentives to already under the tax laws to the manufacturers as part of the drive to industrialize the country and replace imports.
He adds that considering the current situation caused by coronavirus pandemic, where the whole country is on lockdown with all major production sectors of the economy closed, there is need for the current excise duty rates to be maintained so as to stimulate the economy and enable it to recover.
Also rejected by the committee is the increase of excise duty on wine made from locally produced raw materials from 2000 to 2300 Shillings, an increase of excise duty on petrol by 150 Shillings per litre from 1,200 to 1,350 Shillings, an increase of excise duty on Kerosene from 200 to 300 Shillings per litre.
Parliament is slated to debate and take a final decision on the committee recommendations tomorrow.
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