Bella Wines could close over high taxes - Proprietor

Bella Wines is the largest organic wine producer and ​distributor in Uganda today. 

However, Prudence ​Ukkonika, the company founder yesterday, Thursday made a public cry to the government over the excessive tax on her brands.

Ukkonika said although she employs scores of Ugandans and supports many more rural fruit farmers, URA is threatening to put her out of business. 

During an investors’ meeting hosted by the Uganda Investment Authority (UIA); Mrs. Ukkonika confronted the URA Commissioner General Mr John Rujoki on the matter.

“I have been writing to you but I don't know if you get the letters. I am wondering if I should stop the investment altogether,” she said.

“I am getting a profit of Shs 500 from a bottle and I am paying Shs. 6000! Now my tax bill has grown to Shs 1 billion. It is not that I don't want to pay taxes but I cannot pay what I don't have.”

She says her local excise duty has been “exaggerated” because her products are being classified together with the other dangerous products on the market. Yet hers, she says, is a much safer and healthier brand.

Bella Wines, she says, is being exported to countries with some of the most stringent quality controls like South Africa, Russia, and even neighboring Rwanda.

The company also produces fruit juices and was recently planning to move into bottled water, but Ukkonika says she’s been forced to stop production of the pineapple brand because of the same tax issues.

“The Government gave me free land, but I am even struggling to develop it. What I am doing is for the good o the economy not myself. I am not working for school fees, my husband built me a house he has his pension. I don't need money.”

URA CG Mr Rujoki in response admitted that Shs 6000 on Bella Wines was excessive and promised to look further into it.

“We are going to have further discussion, but what it boils down to is a policy issue. If the local excise duty is fixed as so much per liter, mine is to administer that; but if you are saying it is too high and it is now hurting your business, we are going to sit and look into it,” promised the CG.

The investors' meeting was held on the occasion to unveil the new UIA one-stop center where investors will walk in to get all services necessary to start a business in Uganda.