City traders go on strike

Apr 15, 2005

BUSINESS in Kampala city ground to a halt yesterday as traders began a strike against what they called high taxes resulting from the East African Customs Union. Shops on many streets remained closed save for a few eating places and drug shops.

By Isaac Kalembe and Felix Osike

BUSINESS in Kampala city ground to a halt yesterday as traders began a strike against what they called high taxes resulting from the East African Customs Union. Shops on many streets remained closed save for a few eating places and drug shops.

The Government yesterday said as an interim measure, reverted back to the pre-union tax rates on rice and second-hand clothes.

In a statement, Prime Minister Apolo Nsibambi said President Yoweri Museveni would meet the traders.

Nsibambi yesterday met the executive of Kampala City Traders Association (KACITA) together with the ministers of finance, trade and health and officials from the Uganda Revenue Authority (URA), the Uganda National Chamber of Commerce and the Police to discuss the matter.

Nsibambi said the interim measures on rice and second-hand clothes were in harmony with measures taken by Kenya and Tanzania “pending a meeting of the Council of Ministers in early May 2005.”

“A review of taxes on other items will have to be set at that meeting,” Nsibambi said.

Traders at the busy Kikuubo, Kiyembe Lane, Luwum, Ben Kiwanuka, William and other streets, discussed the strike.

Others gathered at the City Regency Hotel where state ministers Mike Mukula for health and Ssemakula Kiwanuka for investment were expected to address the strikers.

In a separate statement, internal affairs minister Dr Ruhakana Rugunda warned the traders against intimidating their colleagues to close the shops.

“The Government has noted that a number of traders have closed businesses in protest against matters that the Government is still discussing with the leadership of the traders. A number of people are intimidating those who want to keep businesses open, forcing them to close their businesses.

“The Government advises traders to keep their businesses open. Those who are intimidating traders whose businesses are open will be dealt with.

“The public is informed that the dialogue between the Government and the leadership of the traders is still going on,” he said.

In Kikuubo, the Police thwarted an attempt to lynch a businessman who defied the strike.

Ssempa of Resco Enterprise, a dealer in general merchandise, reportedly drew a pistol as “vigilante” traders demanded that he close the shop.

Three patrol police vehicles rushed to the scene to calm the situation. No arrests were made. By press time, the Police Ssempa’s shop remained open under Police guard.
KACITA secretary general Mubarak Ntale said the traders wanted Common External Tariff (CET) to be abolished.

“The Common External Tariff (CET) is faulty; it should be abolished. We want a return to the old tax regime as EAC leaders revise CET,” said Ntale, adding that KACITA was a lobby and advocacy group that believed in dialogue.

“We know what we want. The economy is doing badly. High taxes have negatively affected business and there is little money in circulation,” Ntale said.

The traders are also unhappy with the influx of Chinese running shops; and high electricity and fuel prices.

They said they had been sidelined as the Government only considered big investors.

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