Traders attending the India-Uganda bilateral policy dialogue have raised concerns over the lack of incentives for importers of pharmaceutical products, saying they are instead strained by what they described as double taxation.
According to the traders, many surgical products, including gloves, are subject to multiple verifications. In addition to paying pre-export verification fees in India, shipments are subjected to further certification by the Uganda National Bureau of Standards (UNBS) and the National Drug Authority (NDA) upon arrival in Uganda.
Some traders reported paying more than $300 for testing in India, only for their shipments to fail local standards checks, adding to delays and costs.
Responding to these concerns, Patricia Bageine Ejalu, UNBS Deputy Executive Director in charge of Standards, said the process is not double taxation, explaining that each regulatory body serves a distinct purpose. She noted that a review of the NDA Act is underway to streamline mandates, particularly for food supplements and medical devices, where UNBS and NDA conduct separate tests related to quality and medicinal claims.
Jude Ochieng, a Tariff Supervisor at Uganda Revenue Authority (URA), clarified that pharmaceutical products currently attract no duties, and added that incentive schemes are more generous for companies that establish operations locally, in line with the government’s push for import substitution.
The remarks followed the presentation of Economic Policy Research Center (EPRC) findings showing that Uganda imported over $1.3 billion in high-value goods—including pharmaceuticals, vehicles, and machinery—from India in 2024. India’s direct foreign investment stock in Uganda also doubled from $128 million in 2016 to $353 million in 2023.
EPRC Executive Director Sarah Sewanyana noted that despite multiple agreements to facilitate trade, challenges remain. She highlighted Uganda’s trade deficit with India of over $208 million in 2024 and urged India to further ease import restrictions to balance trade.
The dialogue, attended by Indian High Commissioner to Uganda Upender Singh Rawat, aimed to explore partnerships and investment opportunities between the two countries. Rajesh Kumar, Chairman of the Indian Business Forum Uganda, praised Indian businesses for their contributions to taxes and employment, urging investors to seize the opportunities available in Uganda.
