KACITA accuses URA of using impostors to negotiate on behalf of traders

13 May 2025, 4:32 pm

By Ronald Ssemagonja

The Kampala City Traders Association (KACITA) has accused the Uganda Revenue Authority (URA) of allegedly deploying impostors to pose as traders and negotiate tax matters on behalf of the business community.

Speaking during a press conference held Tuesday at the KACITA headquarters in Kampala, the association’s chairman, Dr. Thadeous Musoke Nagenda, expressed strong concerns over what he described as “a disturbing trend” of self-seekers being used by URA without the involvement of officially recognised trader bodies.

“We have noted with concern this disturbing trend where some well-known self-seekers masquerade as traders to negotiate with URA on behalf of the business community,” Musoke said. “One wonders what the intentions of the authorities at URA are. During a select committee meeting at the Prime Minister’s Office, it was guided that the business community especially KACITA, should always be consulted through recognised structures.”

Musoke further revealed that KACITA had received reports indicating that the URA Commissioner General had issued an internal directive for the verification of all groupage containers currently held in bonded warehouses.

“URA officers are now calling individuals whose phone numbers appear on packages to clear goods,” he said. “Yet, the consignee is the legal owner unless authority is properly transferred. This raises serious risks—what happens if someone fraudulently claims cargo? Will URA take responsibility and compensate the rightful owners?”

The traders’ association also raised concerns over the ongoing taxation method used on imported garments, where goods are assessed by weight rather than transaction value. KACITA insists this method is not only unfair but also violates international trade agreements to which Uganda is a signatory.

“As per the World Trade Organisation (WTO) and the General Agreement on Tariffs and Trade (GATT), customs taxes should be based on the transaction value, the actual price paid for goods,” Musoke explained. “Section 122 of the East African Community Customs Management Act 2004, as amended, also clearly outlines how taxes should be assessed. Unfortunately, despite previous engagements, URA continues to act unilaterally.”

He noted that KACITA had consulted several government agencies, including the Ministry of Finance and the Ministry of Trade, but their concerns had not been addressed. The association had also previously reached an understanding with the Prime Minister that no new measures would be implemented until the President issued formal guidance—a position URA appears to have disregarded.

KACITA is now demanding that URA:

• Respect agency and sales agreements between container coordinators and end users to ensure proper tax declarations;
• Suspend the newly hiked customs values on garments until all relevant stakeholders are consulted;
• Uphold WTO and GATT provisions that call for fairness and transparency in customs valuation.

“While we support reforms aimed at improving tax administration, the approach and timing of these new policies are deeply problematic,” Musoke emphasised. “URA expects 100% tax payments from groupage owners, many of whom operate on credit extended by container coordinators. These coordinators often retain the bills of lading as collateral. It is unfair to penalise these businesses under the current arrangement.”

The association reiterated its commitment to dialogue but warned that continued unilateral actions by URA could disrupt business operations and damage confidence within the trading community.