Gov’t to tax Coffee farmers per acreage? details emerge

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Coffee farmer in his garden

KAMPALA- The state minister of finance in charge of general duties Henry Musasizi has refuted allegations that government is planning to tax all coffee farmers depending on the acreage of their gardens.

Minister revealed this after complaints from Bukomansimbi south Mp Kayemba Solo who told parliament that recently URA sent its officials in Bukomansimbi district, visited different coffee famers and they informed them to get prepared to start paying taxes for coffee gardens.

Kayemba Solo asked the deputy speaker of parliament Thomas Tayebwa to direct the ministry of fiancé to come and explain why they have resorted to taxing coffee gardens.

Cue in……………………..Solo on mmwanyi

In response, the state minister for fiancé Henry Musasizi told the house that they have no plans to tax coffee gardens and he distanced himself from the people who went to Bukomansimbi claiming to be URA officials.

Cue in…………………..Henry on musolo

Last year, Uganda’s government has registered 170,000 coffee farmers in just two weeks as part of a nationwide effort to comply with the European Union’s new coffee trade regulations. With a target of registering up to 1.8 million coffee farmers by December 30, the initiative was a critical step in ensuring Uganda’s coffee sector meets the EU’s stringent EUDR (European Union Due Diligence Regulation) compliance deadline.

The milestone was announced by Israel Ssebugenyi, a technical expert with the Uganda Coffee Development Authority (UCDA), during a coffee stakeholders’ engagement meeting held at Brovard Hotel in Masaka City. The meeting brought together local government officials, coffee farmers, district coordinators, and other stakeholders from coffee-growing regions including Masaka, Rakai, Kalungu, and Bukomansimbi.

Ssebugenyi emphasized the significance of the registration effort, noting that the EU market accounts for 60-65% of Uganda’s coffee exports. Compliance with the EUDR is essential to maintain access to this major trade partner.

“This registration process is vital for our coffee industry’s long-term sustainability and continued access to global markets,” Ssebugenyi said. “It’s important to clarify that the registration is for compliance with international standards, not for taxation.”

The registration is part of a national effort to implement a National Traceability System that ensures full transparency in the coffee supply chain. To achieve this, the government has partnered with Pula, a data solutions provider, which has been contracted to document Uganda’s coffee farms and their owners.