Dott Services Limited, company constructing roads in the Eastern Democratic Republic of Congo has halted construction works due to taxes charged by the Congolese government.
The government charges taxes on materials and vehicles, the company uses in executing its duties.
In the agreement signed by both Uganda and the Democratic Republic of Congo, the project service providers were not supposed to pay any taxes during the construction works.
Dott Services management says they cannot pay any taxes thus calling for Uganda’s government to intervene as early as possible.
However, sources have revealed that the Congolese government has since confiscated the materials (fuel for the trucks, cement) alluding that Dott service must pay taxes for everything they bring into Congo, a move which has made them halt the project so far for 15 days.
“The project is on hold since all the material we came with into Congo has been confiscated, until we pay taxes. (fuel, cement, timber and many others) have been confiscated by the Congolese government. For over 15 days we are not working.”
The Permanent Secretary of the Ministry of Works and Transport Wasswa Bageya, says they are aware of the problem and a team was sent there to settle the matters.
Last year in December, Uganda launched a road-building project in neighbouring DRC aimed at boosting trade between the two countries.
The sites for the roads were handed over to the contractor, Dott Services Limited, a Ugandan construction firm, to commence the works on the 223 KM road network that will open the eastern part of DRC to cross-border trade with Uganda.
The projected is to consume over USD330bn. It covers the Mpondwe/Kasindi Beni road (80km), Bunagana – Rutshuru – Goma Road (89km) and the Beni – Butembo (54km), which were designated as priority roads.
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