Parliament of Uganda has approved an 8% tax levy on fish maw exports following the passing of the Fish (Amendment) Bill, 2021.
Report to the House during a plenary sitting on 03 /05/ 2021, Vice Chairperson of the committee Finance, Planning and Economic Development, Jane. A. Pacuto proposed the levy of Shs 70,000 per kilogramme of the fish maw.
Jane justified that fish maw has been going for as low as 20 cents per kilogramme, yet its selling so highly especially in South East Asian countries.
Therefore, “This proposal will ensure value addition and more revenue for this industry although there is much need to streamline and regulate the fish industry,” she said.
Jane said that government must undertake analytical studies on the value of the fish maw internationally with the view to increase the levy upwards.
“The committee recommendation is that government fast tracks the Fisheries Bill which is already before Parliament,” she added.
Lawmakers however, highly objected to the committee’s proposal and went a head to recommend 8% levy on the fish maw exports saying that the percentage will address challenges posed by price changes.
Ndugwa (the NRM, Buvuma Island County) argued that the fishing community pays several taxes and yet no single incentive is given to them by government.
According to him, “If agricultural machinery is exempted from taxes, fishing inputs are part of machinery for agriculture like fishing nets and boat engines.
He also raised concern over the monopoly of fish maw exportation saying there is urgent need for government to fast track the Fish Maw Protocol with China.
Lyemiyaga County MP, Ssekikubo proposed a 10 per cent levy on fish maw exports saying that it is very a lucrative business, yet restricted to a few.
“It is the engine now in the fishing industry. For purposes of getting more income, it is more reasonable to put a percentage as opposed to the Shs 70,000. We also need to protect the Nile Perch species,” he said.
Ssewungu (DP, Kalungu West) questioned the rationale applied to license fish maw traders, saying that monopoly of the trade affects the progress of the fishing industry.
“Under what circumstances is only one company licensed to trade in fish maw exportation,” he asked.
Pacuto later agreed with the proposal from the legislators to levy an eight percent tax fish maw exportation.
“It is better to go with percentage than figures because the fish maw are of different values and as prices fluctuate, this will not disturb tax collectors in administration,” she said.
The Speaker, Rebecca Kadaga asked the Ministry of Agriculture to address the concern raised by legislators on the monopoly of the fish maw export.
