Chinese Invetors WATU Ask Gov’t for Tax Waivers to Advance Automobile Industry

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The chairperson of WATU Uganda Limited, QuingShan Liu, a Chinese company located in Sino-Mbale industrial park in eastern Uganda that operates automobiles, has asked the Ugandan government for tax waivers in order to improve and advance the automobile industry in the country.

Liu, while speaking at the opening ceremony of the car supplier systems and car filter manufacturing factory on January 31, 2024, at the Sino Uganda Industrial Park in Mbale City, appealed to the government of Uganda for a tax waiver due to the initial start-up expenses and called for community support in order to evolve the automobile industry.

“This is a historic moment towards improving the automobile industry. I request a tax waiver from the government, and we recognise the initial expenses and appeal for community support towards improving the automobile industry,” Liu said.

WATU Uganda Limited, in partnership with National Enterprise Corporation (NEC), the commercial arm of the Uganda People’s Defence Force, has established a cutting-edge car supplier system and filter factory in Mbale to grow the industry.

NEC Managing Director Lt. Gen. James Mugira stated that the factory is part of a larger vision to contribute to import subsidies, job creation, and overall economic development through focusing on quality and aligning production standards with both local and international benchmarks.

“This move not only speaks to the scale of the project but also to the long-term commitment to fostering industrial growth in the region.

According to Jacob Oboth Oboth, the State Minister of Defence, the companies aim at producing 15,000 car filters and 3,000 vehicles annually. He credited the milestone, attributing it to the relationship between Uganda and China.

“This innovation will make a great impact on the automobile industry in Uganda, and the government is looking forward to more innovations spreading out to other parts of the country,” Oboth said.

However, URA estimates that the country is bound to lose Ugx 2.8 trillion in tax exemptions, credits, and deferrals annually.

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