Following a series of complaints from traders on 'increased' taxes on imported garments and restriction of warehousing of some goods, the URA Commissioner General, John Rujoki Musinguzi, met with the traders to understand their plight as he pushed for greater compliance.
These convened under their umbrella associations of United Arcaders, Traders and Entrepreneurs Association(UATEA), Kampala City Traders Association(KACITA) and New Generation Traders Association. Some of the restricted warehoused goods included; wheat flour mobile devices and phones, tiles, marble and granite of all kinds, lubricants, automotive batteries, toiletries and cosmetic products, spaghetti and pasta, and flavors for soft drinks.
Speaking at Sendawula Hall, Musinguzi said that by focusing on encouraging harmony in business, his team will be working on addressing customs valuation issues based on the trader’s invoices to ensure proper payment of taxes.
“We are going to allow goods like marble and tiles to be warehoused for only 14 days. For second-hand clothes, we are going to constitute a team that will do joint research on the importation and generate a report that will guide our actions going forward,” Musinguzi responded.
He also added that URA will clear all the goods currently in the bonds and warehouses using traders' invoice values and the database that has been generated. This exercise will end on January 31.
“For now, let us follow the law of using the first method of evaluation which is declaration using genuine invoices and if we do not then URA shall use other alternative methods,” Musinguzi advised the traders.
Musinguzi also urged the traders to use genuine invoices as per customs valuation rules.
Speaking on behalf of the traders, Issa Sekito, the KACITA spokesperson, highlighted the need for URA to revise the customs valuation on importation for second-hand clothes and also reconsider warehousing restrictions on different goods.
“As traders, we are incapacitated to pay taxes on some goods like tiles and marble because these can easily be damaged. Please, allow us to bring the goods to Uganda and warehouse them for the normal 14 days as has been the habit,” Sekito emphasized.
Kabanda John, the Chairperson of UATEA requested that URA change the mode of payment for traders to allow them to comply with paying taxes.
“The dealers in tiles want to pay taxes here in Uganda, give them all the guidelines and they will be followed. Those dealing in textiles, you have levied an addition of between Shs5 million and Shs7 million shillings please remove that money,” he said.
