Government is to waive taxes on manufacturers who have agreed to produce sanitizers in a bid to stop the spread of coronavirus pandemic in the country.
The minister of state for Investment Evelyn Anite has said that the government will waive value added tax (VAT) and excise duty on manufacturers' operations after they agreed to turn part of their liquor stock into sanitizers.
Anite who met the manufacturers today Monday in Kampala said they had agreed to change strategy to now converting the 7.3 million liters of alcohol into sanitizers to bridge the acute shortage. She said that the exemption is for certified companies only.
Currently, there are only two certified companies: Saraya and Go Hi-tech that make sanitizers in the country. The minister said as of Monday morning, 48 companies had applied for certification to make sanitizers. The minister didn't reveal the companies that have applied to manufacture sanitizers.
It will take Uganda National Bureau of Standards (UNBS) between four and seven days to certify these companies, Anite said. UMA chairman Barbara Mulwana and UNBS executive director Ben Manyindo attended the meeting.
Anite says "in order to deal with the shortage and exorbitant increment of hand sanitizers in the wake of the COVID-19 outbreak, alcohol and spirit manufacturers will get government support through VAT and excise duty waivers to enable them to maximize production."
The minister said during the meeting with the spirit manufacturers, UNBS and National Drug Authority pledged to fast-track the registration of quality hand sanitizers "but also assured of increased surveillance across the country to ensure fake sanitizers are not released onto the market."
The demand for hand sanitizers went up as the countries pushed to control the outbreak of the coronavirus disease (COVID-19). The prices jumped from Shs 25,000 to more than Shs 120,000.
More than 358,803 cases have been confirmed globally and more than 1,300 coming from Africa and more than 100,000 people have recovered. Uganda has since reported one case of COVID-19 of a Ugandan who jetted in from Dubai last week. Ugandans have also been advised to wash their hands using soap and stay away from congested places where possible.
On Sunday, President Yoweri Museveni said Ugandans should also minimize the use of public transport to curb the spread of COVID 19. He also urged all Ugandans to avoid all forms of greetings, including elbow greeting and shaking hands.
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