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Dairy Farmers and ‘Tax-man’ in Uganda at Crossroads

11 March 2016

Plans by the Government of Uganda to start levying taxes on dairy farmers has been met with apprehension by dairy farmers under the umbrella of Uganda Crane Creameries Cooperatives Union (UCCCU). The farmers say that the move will only derail growth of a rather nascent dairy industry in the country. Representatives from UCCCU were however quick to note that farmers were not opposed to taxes as long as the industry is allowed to grow to attain a level where taxes will not be punitive. In addition, levying taxes to farmers is seen as counterproductive as doing so is likely to result in non-delivery of milk to processing plants by farmers in an attempt to evade taxes. UCCCU with funding from The Netherlands and Denmark through aBi Trust have been instrumental in boosting the dairy industry in the south western Uganda, resulting to increased milk production, value addition and cold chain management.




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