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In Summary
Mr Ivan Asiimwe, the manager of Agribusiness unit at the UCA, urged Uganda Revenue Authority (URA) to exempt farmers’ organisations and Saccos from taxes
KAMPALA. Farmers have protested government’s proposed budget reduction to the agriculture sector saying the move will cripple the already under-funded key sector and affect production.
The farmers, during a workshop organised by the Uganda Cooperative Alliance (UCA) in Kampala, last Thursday, said agriculture forms the backbone of the country’s economy but is not adequately supported.
Mr Kenneth Katungiza, the deputy executive director of Uganda National Farmers Federation, said the move is self defeating.
“There is need to create market and extend awareness programmes to farmers on how they can improve the quality of outputs. But this cannot be achieved with insufficient funds allocated to the sector,” he said.
Mr Katungiza added that the government should think twice before it passes the budget to ensure it does not sabotage the operations of the agriculture sector.
“A lot of research is needed on crop diseases in order to come up with scientific solutions to mitigate the existing challenges. The sector needs more financial support to sustain the economy of this country,” he said.
According to the proposed budget for the financial year 2015/16, the budget for the agriculture sector was reduced by Shs56.7b from the current Shs473.7b for this financial year to Shs417b.
Mr Billy Butamanya, the deputy general secretary UCA, said such a budget will make the sector very expensive because the ministries of Agriculture and Local Government as well as other institutions under the sector, will not be in position to deliver quality services.
“Such a budget cannot allow extension of agriculture services to the indigenous persons. It cannot allow recruitment of technical people especially at the district level. It is discouraging people who would like to venture into the agricultural production,” Mr Butamanya said.
Mr Butamanya also urged government to set up policies that will govern farmers’ cooperative organisations, including savings and credit cooperative organisations (Saccos).
Mr Ivan Asiimwe, the manager of Agribusiness unit at the UCA, urged Uganda Revenue Authority (URA) to exempt farmers’ organisations and Saccos from taxes.
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