Traders in Kampala, united under the umbrella of KACITA, are gearing up for extensive protests against the recently introduced policies by the Uganda Revenue Authority (URA), which they believe adversely impact their businesses.
The contentious directive from the authority mandates all importers to settle taxes in Mombasa before their goods enter Uganda. Traders perceive this move as a poorly orchestrated strategy aimed at undermining their businesses.
At the beginning of June, URA issued a notice citing Regulation 64(k) of the East African Community Customs Management Regulations, 2010, indicating that as of January 1, 2024, certain goods would no longer be eligible for the Customs Warehousing Regime.
The affected products listed include Wheat Flour & Wheat Grain, Mobile Devices & Phones, Tiles, Marble & Granite of all kinds, Lubricants, Automotive Batteries, Toiletries and Cosmetic Products, Pasta and Spaghetti,garments and Flavors for Soft Drinks.
Additionally, the notice expanded restrictions on items already excluded from warehousing, such as sugar, milled and broken rice, motorcycle/vehicle tires and tubes, dentifrices, and used motor vehicles of 13 years and above from the year of manufacture. The clearance for these goods will now be facilitated under the Single Customs Territory (SCT) arrangement, with taxes to be paid upon arrival at the first Port of entry into the East African Community.
However, traders argue that implementing this policy is challenging, particularly in the current economic climate.
Prominent traders in Kampala expressed frustration, stating, “When you import something, you keep looking for money so that by the time the goods reach Kampala, you have at least got the money to pay taxes. But now URA wants us to pay from Mombasa.”
They added that many businesses are still recovering from the impact of Covid-19, and the new measures are perceived as unnecessarily harsh.
Numerous traders echoed these sentiments, criticizing the Rujoki Administration for what they perceive as an unsympathetic approach. Despite attempts to reach Abel Kagumire, the Commissioner Customs, for further clarification, our calls went unanswered. The discontent among traders is palpable as they prepare to voice their concerns through planned protests against the URA’s recent tax policies.
