The government has slapped taxes on imported agricultural products.
In the 2020/21 budget, Matia Kasaija, the Minister of Finance, said he seeks to promote import substitution and develop local industries.
He said the government has increased import duties on goods that are produced or can be produced locally.
The import duty on agricultural products has been increased to 60 percent and other products to 35 percent.
There have been reports of restaurants importing Irish potatoes, milk, and oranges instead of consuming those produced locally.
To further support agriculture, Kasaija removed Value Added Tax (VAT) on the supply of agricultural equipment.
Also, the supply of processed milk will be VAT exempt to enhance the price competitiveness of milk produced in Uganda.