Uganda has asked Kenya and Tanzania to remove prohibitive levies placed on its dairy products saying it could jeopardise trade relations and the East African Community spirit.
In a July 19 letter , the Minister of Agriculture, Animal Industries and Fisheries, Mr Frank Tumwebaze, has asked Kenya and Tanzania, after a flawed soft diplomacy strategy for the two countries, to allow Ugandan milk into their markets.
Since 2020, Uganda has struggled to have its milk products sold in the two East African member states, something the minister said is a barrier to the EAC spirit and regional trade relations.
Mr Tumwebaze also raised before the leadership of Kenya and Tanzania concerns of “ongoing taxes and levies charged on Ugandan dairy products” despite negotiation efforts.
“The TShs2,000 Tanzania (about Shs3,000) levy is prohibitive and hence has hampered Ugandan milk exports to Tanzania solemnly,” the letter addressed to the Minister of Agriculture, Livestock and Fisheries of Tanzania, Mr Adolf Mkenda reads in part.
Mr Tumwebaze also complained about the 1.75 per cent of FOB (Free on Board), Tsh30, 000 (about 46,000 Uganda Shillings) application fees to the Tanzania Dairy Board and 18 per cent Value Added Tax for all dairy products.