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Uganda Revenue Authority (URA) Commissioner General, John Rujoki Musinguzi, and Treasury Permanent Secretary, Ramathan Ggoobi, engaged with Kampala City Traders Association (KACITA) to revamp the valuation process for second-hand clothing imports. The dialogue resulted in resolutions such as transitioning to invoice values, investigating foreign involvement in trading, and strict measures against under-declaring goods.

Uganda Revenue Authority (URA) Commissioner General John Rujoki Musinguzi, alongside the Permanent Secretary to the Treasury, Ramathan Ggoobi, recently convened with members of the Kampala City Traders Association (KACITA) to discuss and streamline the valuation process for importing second-hand clothing.

The productive dialogue, which took place at KACITA’s main office, resulted in key resolutions aimed at improving the import valuation framework. These include transitioning from a per kilogram rate to using invoice values for customs purposes, investigating the involvement of Chinese nationals in local trading activities, and enforcing strict measures against under-declaring goods to evade taxes.

Ggoobi addressed the traders, expressing the government’s intention to alleviate the burden of per kilogram valuation and to enforce laws against misuse of the importation process by foreign nationals, as well as Ugandans complicit in these actions. He firmly cautioned against under-declaration, emphasizing the importance of fairness and legal compliance in trading activities.

“What we are here to deal with is unfairness. If they have URA make the right valuation, then pay the tax because first make money and give us when you make profits. I don’t want to lie to you that we are going to tell URA to allow smuggling; I shall not order Abel to allow traders to underestimate values,” Ggoobi emphasized.

To ensure the proposed adjustments are effective, Musinguzi encouraged the trading community to practice honesty in their declarations and highlighted the issue of smuggling as a significant challenge affecting national revenue. The discussions also touched on the need for Uganda’s tax system to align with those of neighboring countries to enhance trade.

“We shall not have the right grounds to propose amendments that favor businesses when we are still understating even the existent values. Let us be truthful as we wait for the outcomes of the research that will allow us to propose law amendments,” he asked.

KACITA spokesperson, Haji Issa Sekito, praised the government’s responsiveness to traders’ concerns, highlighting the ongoing efforts to establish a more equitable valuation system.

“The President sending a team of these technocrats on a public holiday instead of them going to attend to their needs shows the value the government has put on the trader’s voice. Let us appreciate the government for listening to us. We agree to be using the old valuation methods at 35%, though it’s still high, as we wait for the right system,” Sekito said.

The meeting, which also included insights from other key officials and attracted business leaders from various towns, sets the stage for further engagements with President Yoweri Museveni, aimed at addressing the traders’ concerns comprehensively.