Parliament has resolved to investigate tax evasion in the steel rolling sector, estimated to be worth in billions of shillings.
A motion passed on Wednesday, March 15, 2017, allowed Parliament to investigate the tax evaders, was moved by Bukooli North Member of Parliament, Gaster Mugoya and seconded by Rwemiyaga legislator Theodore Ssekikubo and Bundibugyo district Woman Member of Parliament Ms Norah Bigirwa Nyendwoha.
“Whereas the steel sector has potential to greatly contribute to the development of the country, this is not the case because of chronic and systematic tax evasion prevailing in the sector,” the resolution reads.
Currently, Uganda has about 12 steel mills with the production capacity of more than 500,000 tonnes of steel products annually and more than 23 other manufacturers and importers.
Government has been protecting domestic iron and steel mills against unfair competition from cheaper imported steel and iron products to Uganda from the regional markets but these companies have been evading taxes.