The officials of Mumias sugar company are demanding tax waiver for the ethanol produced in the company to help the mill to revive its finances. After commencing operations on February 1, the mill in the last three weeks produced 300,000 litres of ethanol.
The officials have stated that the returns are poor due to heavy taxation.
Mr Ponangipalli Venkata Ramana Rao, the receiver-manager has approached the government to waive excise duty to generate sufficient revenue.
Rao said, “We earn only sh90 from one litre of ethanol we sell and rest of money goes into the taxes which is affecting our revival strategy.”
The company is expected to earn sh27 million from the sale of 3,00,000 litres of ethanol.
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