'Warlike URA enforcement officers driving taxpayers away'
Feb 02, 2024
“In Busia here, some people collapse and faint on seeing the pick-up truck used by URA’s enforcement personnel,” Regina Nafula Odong, the vice chairperson of Cross Border Traders Women Association, says.
Busia resident district commissioner Michael Kibwika centre, Haruna Mute. ()
Egessa Hajusu
Journalist @New Vision
___________________________ Cross border traders attending a meeting at Busia customs boardroom
The warlike nature of Uganda Revenue Authority's (URA) enforcement personnel is driving away potential taxpayers, Cross-border traders in Busia have said.
The traders say such behaviour is also responsible for URA's failure to attract more businesspeople onto the tax payment compliance list.
They have, therefore appealed to the taxman to improve its relationship with taxpayers to enhance revenue collection.
They claim that it is this warlike nature of URA’s enforcement personnel that is responsible for many traders' adamancy towards changing their attitude to start doing formal trade.
“In Busia here, some people collapse and faint on seeing the pick-up truck used by URA’s enforcement personnel,” Regina Nafula Odong, the vice chairperson of Cross Border Traders Women Association, says.
Nafula was on Thursday, February 1, 2024, speaking during a tax baraza held at the URA boardroom at the Busia One Stop Border Post in Busia municipality.
Taxman woos traders
The baraza, according to URA eastern region manager Robert William Ogwang, 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 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 taxpayers.
Smuggling in eastern
Some of the items regularly smuggled in eastern Uganda include rice from Pakistan. Between July and December last year, a total of 510 tonnes of rice were impounded while 405 tonnes were impounded between January to September leading to a recovery of sh4.5b.
According to the taxman, 130 tonnes of used clothes, 181 metric tonnes of wheat flour, and 189,233 square metres of Kitenge were also impounded in the last six months and 9,637 pieces of phones were recovered in four interceptions.
Other commonly smuggled items are textiles and fabrics, cooking oil, lubricants and pens, engine oil, used shoes, and cement which 1,123 metric tons have been impounded in the last six months.
Recoveries
A total of 5,226 seizures have been generated in the last six months resulting in the recovery of sh9b. The enforcement also recovered 91.3 billion last financial year.
Paul Katatunga in charge of enforcement in the eastern region said snuggling has suffocated the legitimate traders. According to him, genuine traders cannot breathe in a market flooded with cheap goods from smugglers whom genuine traders share market space with.
Local industries that provide employment and pay taxes, he said, are affected by smuggling and end up closing, which denies the Government revenue and leaves communities that depend on them frustrated.
According to him, smuggling is a source of insecurity in cases where arms, explosives, and dangerous drugs find their way into the country.
URA has tried to combat the problem through sensitisation of stakeholders and agreeing on how to work together, using scanners at border points, and employing intelligence networks.
Close Panya roots
Stakeholders suggested that URA close all the illegal entry points manned by Police where smugglers bribe their way across.
Katatunga said smuggling 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, have been the main cause of smuggling.
Patrick Kenyatta Wanjala, the chairperson of the 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 those from the neighbouring countries. Citing the example of cement which is sh15,000 more expensive in Uganda than Kenya.
Tax is crucial
Busia Resident District Commissioner Michael Kibwika said no country will work without tax collection.
He reminded the traders that all services provided by the Government come from tax collection and asked them to appreciate their role in nation-building by fully 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.
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