Home Corporate Sleaze Fine Spinners defaults on tax payment to URA… The untold bigger story

Fine Spinners defaults on tax payment to URA… The untold bigger story

Uganda Revenue Authority (URA) has published a list of Tax defaulters that include Fine Spinners who Tin number is 731000392582.

According to the URA list, Fine Spinners are one of the top 300 defaulters in Uganda.

 

The foregoing revelation is a sharp contradiction in that Fine Spinners CEO Jas Bedi has in the recent past been allowed to lease assets of the former Phenix Logistics Limited [For UGIL] under the pretext that Fine Spinners was to assist turn around the cotton and textile sector in Uganda.

 

Fine Spinners took over the former Apparel Tristar claiming that under new management, the company was to leverage AGOA to see exports soar from Uganda. Trade statistics from the Bank of Uganda relating to the last three years indicate that Uganda did not export any textiles under AGOA. On the contrary, the trade statistics point to increased importation of textiles in Uganda as shown below:

Fine Spinners is not new to controversy. In a letter dated 25.06.2020 by URA to the Finance Manager of Fine Spinners Limited signed by Assistant Commissioner Trade, Irene Muliika, Fine Spinners Limited’s request to import untaxed garments from Kenya was rejected flatly owing to Uganda’s having established measures aimed at revamping the textile industry that has seen duties increase to 35% so as to spur growth of the sector;

 

Coincidentally, at the height of the COVID 19 infections in Uganda, the Government of Uganda decreed that local manufacturers had to supply Masks as a pre-condition to opening the economy. At that point, Fine Spinners claimed to possess the capacity to produce 50,000 Masks per day.

No wonder, she won contracts and unlike other businesses that struggle due to COVID 19, Fine Spinners is expected to be doing well since it has been operational and busy.

 

It seems to appear that while the Government of Uganda has indeed been reasonable and magnanimous, the investor has taken the country for a ride to levels that he cannot honor even payment of due taxes.

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