Monday, January 30, 2023
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Parliament Dismisses Controversial Coffee Deal

Parliament Dismisses Controversial Coffee Deal
Parliament has dismissed the controversial coffee agreement early signed between the government and Uganda Vinci Coffee Company Limited (UVCC)
The agreement signed by the Ministry of Finance on behalf on government would ensure the Italian private company adds value to the country’s coffee beans and promote its export.
However, the agreement has been bashed by a number of people stakeholders in the coffee business were not consulted and the Parliament recently tasked its committee on trade to investigate the agreement and report back to the House for debate.
On Wednesday, the committee chairperson tabled its report before parliament for debate by MPs.
Following a heated debate, parliament adopted the report and the various recommendations as made by the Trade Committee chaired by MP Mwine Mpaka and the House consequently voted to have the controversial coffee deal terminated for being in bad taste.
The Attorney General, Kiryowa Kiwanuka who was criticised green- lighting the deal said government would consider the recommendations by parliament.
We shall take the recommendations and review them and report back to Parliament as required on the actions in respect to the report, he said.
According to the Parliamentary committee chaired by Mwine Mpaka early, it noted that the government had failed to follow its own laws before Okaying the deal.
The agreement is unconstitutional, illegal, void and unenforceable at law since it violates various provisions of the laws of Uganda, including Articles 2,79 and 152 of the Constitution of Uganda, sections 4 (1),7(l), 19 and 2l of the Income Tax Act Cap 340, sections 4 and 5 of the Value Added Tax Act Cap 349, Section 4 (1) of the Excise Duty Act, 2014, section 7 of the National Social Security Fund Act Cap 222, sections 54 and 59 of the Uganda Citizenship and Immigration Control Act Cap 66: and section 80 of the Local Government Act Cap 243, the committee report reads in part.
The committee also noted that it was illegal for government to exempt the investor from paying taxes including income tax, Pay as You Earn, Excise Duty, Stamp Duty, VAT, Import Duty and corporate income tax.
According to the committee chaired by Mbarara City Souths Mwine Mpaka, the tax exemptions were unjustified since the Italian company didnt qualify for such waivers.

Jolliebest Kasajja
Jolliebest Kasajja
Jolliebest Kasajja is a Ugandan Photo Journalist, Influencer, Photo and Videographer, Nnews Editor and Critic for African Politics.


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