Dealers in petroleum and heavy oils will set up private truck parking space to supplement a government run facility at the Malaba border town if a request to the Uganda Revenue Authority (URA) is granted.
Trucks are required to pay sh5,000 in development fees to the Malaba town council for the public truck park
Trucks are required to pay sh5,000 in development fees to the Malaba town council for the public truck park in addition to a sh100,000 road users fee to the URA.
The petroleum dealers say the development fee is an impediment to trade and that the $1.5m (sh3.9b) facility is not large enough for their cargo.
A cross section of companies such as Vivo Energy, Fuelex, Oilcom, Eco Petrol, Kobil, City Oil and Hass made the request at a consultative meeting with the URA over the processes supporting the customs union.
Uganda, Rwanda and Kenya are set to link their tax administrative systems, making it possible for freight forwarders in Uganda to clear cargo directly from Mombasa.
The changes include a reduction in weighbridges for transit cargo from five to two as the East African Community Customs union gains momentum.
Richard Kamajugo, the commissioner customs, collected views from the petroleum dealers on ways of reducing trade barriers along the Northern Trade Corridor.
“The move to clear and enable our products move quickly is worthwhile. It should, however, have the flexibility to allow us pay duty each single time we load than paying upfront,” noted Ivan Kyayonka, the Vivo Energy Uganda managing director.
Fuel imports missed targets in the 2012/13 financial year, creating a sh123b shortfall when combined with foreign exchange fluctuations. Collections are expected to improve this year due to improved trade conditions.
Source The New Vision
