Companies purchasing sugarcane in Masindi accused of not paying taxes

Masindi: Sugarcane companies buying cane from Masindi District have been accused of failing to pay taxes and other district-imposed fees.

The concerns were raised during an extraordinary council meeting held at the district chambers to approve recommendations on the location of weighbridges aimed at combating sugarcane theft.

The recommendations were presented in a motion tabled by the District Secretary for Production, Works, Natural Resources, Trade and Local Economic Development, Geoffrey Kiiza Bigabwa. The sitting followed guidance from Ministry of Trade, Industry and Cooperatives, which asked the council to propose new locations for weighbridges after their closure in an effort to curb sugarcane theft.

In the motion, Bigabwa tabled 13 recommendations developed by the district executive committee. Among them was a proposal that all sugarcane leaving the district be weighed before delivery, and that all companies or individuals involved in the sugarcane business be registered at designated weighbridges. The committee also recommended that vehicles transporting sugarcane be clearly labeled with the company name.

Other recommendations include positioning weighbridges along major transportation routes, requiring uncontracted farmers to obtain a letter from their LC1 chairperson confirming where the cane was harvested, and ensuring that farmers sell their sugarcane directly to purchasing companies without involving middlemen.

Simon Byaruhanga, the district male youth councillor, suggested that sugar companies purchasing cane from Masindi should formally engage with the district leadership. He noted that other districts generate significant revenue from sugar factories, unlike Masindi.

This proposal was supported by Speaker Moses Kirya, who presided over the sitting. He directed all sugar companies buying sugarcane from Masindi District to register with the district authorities, stressing that farmers have not been adequately protected from exploitation.

Kirya observed that while non-governmental organisations operating in the district enter formal partnerships with the local government, some sugar companies began purchasing cane without signing memoranda of understanding with the district a part from Kinyara Sugar Ltd.

He further alleged that some factories have contributed to road damage despite the district maintaining the roads with limited resources. He also raised concerns about accidents involving heavy trucks and misconduct by some workers within communities.

Kirya said the district had introduced a loading fee, which some companies have reportedly refused to pay. ”They come and purchase sugarcane and go, they don’t pay taxes,” he stressed.

Cosmas Byaruhanga, the Masindi district LCV Chairperson said that the district losing a lot of revenue since these companies don’t taxes thus suggesting the production department to start taxing these companies to increase on the revenue.

Christopher Achidri, the district councillor representing Nyantonzi Sub-county, urged the council not to focus solely on sugarcane theft, noting that coffee farmers are facing similar challenges.

Achidri also said some farmers have not taken sufficient steps to protect their cane from thieves, adding that cane spillage during transportation has pushed some growers to seek alternative markets from other millers.

After deliberations, councillor Timothy Twesige moved a motion for the adoption of the recommendations, which was unanimously approved by the council.

Speaker Kirya said the council minutes would be ready within a week and forwarded to the district chairperson for onward submission to the Minister of Trade.

Speaking after the meeting, John Karuhanga, chairperson of the Southern Sugarcane Zone, commended the councillors for what he described as pro-people recommendations that would enable farmers to benefit more from their business.

Sugar companies purchasing sugarcane from Masindi include Kiryandongo Sugar, Bwendero Sugar, Hoima Sugar Factory, Victoria Sugar Factory, Kyenjonjo Sugar, and Kinyara Sugar Limited, which operates established estates and contracts outgrowers in the district.

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