By George Bukenya
Prime Minister Nabbanja found a hard time to convince Kampala Traders to open their shops while negotiations are under way aimed at finding solutions to their conflicts.
In a meeting she convened at Uganda Bureau of Statistics hall Nabbanja was all through out her speech sounding apologetic.
However in the meeting the traders who deal in garments informed her that the tax that is charged basing on kilogram is regressive in nature and it has forced many out of business even the importers from countries such Dr. Congo and South Sudan have resorted to other destinations like Tanzania were prices are fair due to lower rates of taxes.
They also reported to her that URA is failing their businesses due to the delay in releasing their containers while others informed her that there are some errant URA reporters who even after they paid taxes and containers have been released they order the enforcement officers to huthe container back to the office claiming that the amount of tax assessed was wrong because they want ‘kintu kidogo’.
The traders also complained about the Chinese who sell to them merchandise in form of wholesale yet they also own retailing outlets where they sell the same products at very cheap prices something, they are unfair.
In response to the Traders grievances the prime minister said he was sent by the president to meet them and recorded all their problems and later report to president Museveni.
She also said that she will work on paper which she will president to cabinet to see that the tax law is changed to remove a system of charging taxes on garments per kilogram and go back to the former one. However, she said this need time asked them to allow only one months and the law will be in place.
A committee of six people comprising of three traders, URA, UNBS and ministry of trade each one representative was put in place and given only two weeks to carry out research on
Most of the Trader who spoke pinned URA Commissioner General Musinguzi Rujoki for working towards failing government and called on his resignation alleging that his methods are ruining trading businesses in the country.
Among the wrongs they accuse Musinguzi are the huge penalties that URA slaps on their containers which range from UGX 60-200 million and huge tax rates on garments.
They asked government to align the tax regime to match with those of other East African Community member states for instance they alleged that a 40ft by container is charged US $ 18,000 in Rwanda, US $ 22,000 in Kenya, and 20,000 in Tanzania but URA here charges US$ 130,000 a figure they is too exploitative and exhorbitant.
The traders in that meeting resolved to tentatively open their shops as they are waiting for government response on the issues affecting their businesses.