The commissioner general of the Uganda revenue authority has explained the rise in the cost of sugar despite the government announcing a reduction in excise duty on sugar in the 2011/2012 budget speech.

Alen Kagina has told MPS on the finance committee that hike is as a result of a fail in supply from sugar companies.

URA boss, Allen Kagina

The price of sugar has reached 3,500 shillings a kilogram from 2500 a few weeks back. Kagina has told the members of parliament that the supply was cut off after Lugazi and Kinyara sugar companies reduced supplies for purposes of holiday machine maintenance of the factories.

Kagina says she expects the price to fall to 2,800 shillings by the end of the month as the two companies resume normal supply.

She says the price is expected to fall further after parliament approves a 50% cut in exercise duty announced in the budget.

Ultimate Media