Ugandan fuel dealers have rejected government claims that they receive a tax waiver as an incentive for using the Southern route to ship their fuel imports from the Dar es Salaam port, according to The Daily Monitor.

Shell country manager, Ivan Kyayonka, said reportedly said government had not yet effected that waiver. “It was debated by cabinet but it has not been passed,” Kyayonka said.

To avoid a repeat of the fiasco Uganda went through during the 2007/8 post-election violence which paralysed the economy for depending on Mombasa port, some importers have resorted to using the expensive Southern route after government promised a Shs150 waiver on the excise duty.

This was aimed at luring them into embracing the route and also playing as mitigation on the costly (Tanzanian) route.

Transporting fuel through Dar es Salaam route costs $200 per 1.000 litres while Kisumu route for the same amount of fuel it costs $50.

According to the Daily Monitor, the Trade Minister, Amelia Kyambadde, said government had already issued the Shs150 waiver to the fuel dealers.

If this waiver was effected, fuel companies would be paying Shs700 for each litre of petrol imported through this route down from the current Shs850.

Those importing diesel will be paying Shs380, down from the current Shs530 for every litre entering the country.

But Uganda Revenue Authority is not yet aware about the tax waiver, the Daily Monitor claimed.

According to the tax body, there was no instruction to that effect yet, meaning they were still collecting the due revenue as mandated.

“We do not have that instruction. If it comes, it must be supported with the relevant legislation for us to enforce it,” Daily Monitor quoted URA Assistant Commissioner Stephen Magera, as having said.