Uganda Revenue Authority team at the Busia border point have seized 5,226 consignments in the last six months resulting into the recovery of sh9 billion.

In the last financial year, the enforcement also recovered 91.3 billion last financial year.

Paul Katatunga, the in charge enforcement eastern region says smuggling has suffocated the legitimate traders since the market is flooded with cheap goods from smugglers.

Local industries which provide employment and pay taxes, he said are affected by smuggling end closing denying government revenue and leaving communities that depend on them frustrated.

Smuggling, he also warned is a source of insecurity in cases where arms explosives and dangerous drugs find their way into the country.

Cross border traders attending a meeting at Busia customs boardroom

Katunga made the revelation at an a community meeting (baraza) on Thursday  during a tax baraza held at URA boardroom at Busia one-stop border post.

The baraza, according to Robert William Ogwang the regional manager URA Eastern was aimed at encouraging traders interventions put in place to facilitate smooth trade.

Ogwang said traders have continued smuggling despite the support provided by customs.

Ogwang said they aimed at encouraging traders to pay tax and also partner with the tax collector and other agencies to fight the vice of smuggling.

"URA has greatly changed because we can sit and freely talk with traders and provide all the information they want to know about trade,” he said.

The tax collection body he said is expected to generate sh30 trillion this financial year noting this can only be achieved when many people enroll to pay tax which requires massive sensitisation of the tax payers.

Smuggling in Eastern Uganda

Some of the items regularly smuggled into Eastern Uganda include rice from Pakistan. Between July and December last year, a total of  510 tons of rice were impounded while 405 tons were impounded between January to September leading to a recovery of shillings 4.5billion.

130 tons of used clothes, 181 metric tons of wheat flour, 189,233 square meters of Kitenge were also impounded in the last six months and 9,637 pieces of phones recovered in four interceptions.

Other commonly smuggled items are textiles and fabrics, cooking oil, lubricants and pens, engine oil, used shoes and cement which 1123 metric tons have been impounded in the last six months.

Cross border traders urged URA to improve relationship with tax payers so as to enhance revenue collection.

The traders claimed that the warlike nature of URA’s enforcement personnel makes it difficult to attract more tax payers as many traders are still adamant towards changing their attitude to start doing formal trade.

“ In Busia here, some people collapse and faint on seeing the pick-up used by Uganda Revenue Authority’s enforcement personnel,” said Regina Nafula Odong the vice chairperson cross border traders women association 

Close Panya roots

Stakeholders suggested that URA  close all the illegal entry points manned by police where smugglers pass, pay some little money and continue with their business.

Smuggling he said will never stop for as long as the illegal entry points remain open. He also encouraged customs officials to continue changing by becoming pro people.

Poor relations between the staff and the community especially speaking too much English which traders do not understand has been the main cause of smuggling.

Patrick Kenyatta Wanjala the chairperson business community advised URA to call prominent smugglers and talk to them.

Harmonize taxes

The traders said they smuggle because most Ugandan goods are very expensive compared to neighbouring countries. Citing the example of cement which is sh15000 more expensive in Uganda than Kenya.

Tax is crucial

The Busia resident district commissioner Michael Kibwika said no country will work without tax collection.

He reminded the traders that all services provided by government come from tax collection and asked them to appreciate their role in nation building by full filing their tax obligations.

“Let all the trades in this country subject themselves to customs processes,” he said adding that traders should collectively manage the border with other stakeholders.

On harassing traders, Kibwika appealed to enforcement personnel to be humble and communicate well with the taxpayers, but cautioned traders against engaging in fights with armed security personnel.

He said the security committee in the district has profiled all smugglers noting they will soon hand over the list to customs officials who he said should not make any arrest before talking to the smugglers to appreciate why they should pay tax.