• Authored By: Justine Luwedde and Aida Kibirige Nattabi
23 Aug 2022
  • File Size 192.02 KB
  • Published August 23, 2022

What are the implications of imposing import tariffs on domestic manufacturing production in Uganda?

The study examines the effect of tariff increments on the production of selected products in Uganda in the FY 2019/20. The results show continued importation of the selected products even after the tariff increments. This is because manufacturers are constrained and lack the capacity to; produce some of the products, adjust production to meet the local demand, and depend on imported inputs. In addition, there is a loss in consumer welfare in the short term, and the total revenue effect is positive across all tariff lines but not significant.

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