Tensions are rising again between Kampala’s traders and the Uganda Revenue Authority (URA) over a controversial new tax directive. Traders say the rule, which bans consolidated container imports, could crush small businesses already struggling to stay afloat.
Previously, small-scale traders would import goods together under a single container led by a designated “container leader.” This leader would distribute the tax burden, often allowing flexible, low-interest installment payments. It was a lifeline for thousands.
Now, each trader must clear goods individually using their Tax Identification Numbers (TINs). URA claims the move will curb revenue leakages. But traders argue it shows little understanding of the daily realities they face.
“Container leaders have given us breathing room. They let us pay gradually. URA’s system doesn’t,” said Moses Bagonza, a clothing trader downtown.
William Kaggwa, who deals in construction materials, sees the bigger picture but warns of the fallout.
“This policy won’t hurt bigger traders as much. But the small ones depending on container sharing could be wiped out,” he said.
The numbers are stark. Kampala City Traders Association (Kacita) estimates over three million traders operate in Kampala, but only about 10% own containers.
Each container typically supports over 40 traders—highlighting just how vital the shared system is.
Kacita Spokesperson Thadeus Musoke says URA rolled out the directive without proper consultation.
“We need a consensus on shared container taxation. Without it, URA is endangering thousands of livelihoods,” Musoke warned.
URA’s strategy isn’t without defenders. Former URA Commissioner Dickson Kateshumba, now a legislator, says the goal is transparency.
“Individual TIN-based clearance will make every trader’s import record traceable. But rollout must be consultative,” he noted.
Déjà Vu: Traders Recall the 2023 EFRIS Unrest
The brewing anger mirrors the 2023 protests over the Electronic Fiscal Receipting and Invoicing System (EFRIS).
Traders then argued the system was poorly explained and unfairly implemented, leading to mass shop closures across Kampala and nearby towns.
At the time, heavy pressure from Kacita forced URA to temporarily suspend EFRIS. Now, traders say URA risks repeating the same mistakes.
“URA hasn’t learned from EFRIS,” said a trader in Kikuubo. “You can’t impose tax rules without understanding how we survive. People are still recovering from COVID-19 and inflation.”
As pressure mounts, Kacita is demanding urgent talks with URA. They propose a joint taskforce to rework container clearance models and design more flexible tax payment plans.
Analysts warn that ignoring trader concerns could trigger another wave of protests, destabilizing business in the capital and sabotaging URA’s efforts to expand the tax base.
For now, the business community awaits URA’s next move. But the message from the streets is loud and clear: tax reforms must not come at the cost of survival.
