Whereas paying taxes is a noble duty and not a punishment, finance minister Matia Kasaija on Thursday assured textile traders to remain calm, saying the import tax rate would be eased.

Although textile traders are paying a levy of East African Community (EAC) Common External Tariff rate ranging from 10 to 35 per cent and a duty rate, the government also proposed another ($5) per kg or 25 per cent tax charged on imported textiles saying it will protect local textile manufacturers.

They, however, decried this amount, asking for a reversal of the proposed rate of $5 per kg, saying it increases the tax burden on the importer who is already struggling to comply with the EAC Common External Tariff rate.

Kasaija assured the traders that this would be addressed.

“Therefore, there is no need to strike. However, paying tax is a noble duty and not a punishment so Ugandans should embrace it,” Kasaija said, at the ongoing national budget conference taking place at the Kololo Independence Grounds.

Budget priorities in the financial year 2022/23 include restoration of business activity by increasing access to capital, Industrialisation focussing on agro-industry and light manufacturing, enhancing wellbeing of Ugandans through improved health and education and improving productive infrastructure.

The conference also highlighted opportunities for growth in the short to medium term even with COVID-19.

These include acceleration of import substitution, digitisation socioeconomic activities to improve efficiency, foreign direct inflows for infrastructure developments and improved access to export markets.

Kasaija said the budget conference seeks to concretise the country’s budget strategy and priorities required to meet the development agenda while addressing current socioeconomic constraints.