URA toughens on clearing agents
THE Uganda Revenue Authority (URA) will dismiss corrupt clearing and forwarding agents because they soil the name of the fraternity, a top official warned last week. <br>
By David Mugabe and Samuel Balagadde
THE Uganda Revenue Authority (URA) will dismiss corrupt clearing and forwarding agents because they soil the name of the fraternity, a top official warned last week.
The tax body also warned car bond managers against releasing unregistered vehicles for personal use.
It is alleged that some unregistered posh cars in bonds find their way out, contrary to the customs rules.
“We are still investigating the circumstances under which unregistered vehicles find their way out of bonds and be used on weddings. Some car bond managers use these vehicles to pick their children from school which is wrong,†Sarah Kasheka, the URA acting customs commissioner, told a clearing and forwarding integrity forum in Kampala.
“Please work on your name as we work on ours,†Kasheka told the over 200 agents during a meeting at the Imperial Royale Hotel.
However, the bond managers denied the practice, saying the facilities are managed by URA customs officers, who also keep the keys for bonded unregistered vehicles.
A Nissan Tundura was recently reportedly registered as Toyota Hilux purportedly to pay less taxes against the car valuation guidelines.
Kasheka acknowledged that integrity challenges in customs were manifested in time management, quality of data, system stability, service delivery and customer care.
“There are cases of deliberate incorrect declarations, processing of wrong declarations either knowingly or unknowingly, connivance of staff with agents and importers to evade taxes through misdeclarations of values, classification and quantity under declarations,†said Kasheka.
Charles Kareba, the chairman of Uganda Freight Forwarders Association, said the main focus should be on encouraging compliance through incentives and training.
“If for instance they know I am compliant, then my license should be automatic, but at the end of the year, they vet all of us,†Kareba complained.
He said in instances when the URA computer system breaks down, the agents have no alternative, but to wait yet, they are under pressure from the clients.
“This is what causes people to start looking for short cuts,†Kareba acknowledged.
Kassim Omar, the national chairman of Uganda Clearing and Import Forwarders Association, argued that the clearing and forwarding industry was unique because of its parasitic trading feature and an absence of a regulatory framework that could define the scope and function of its members.
“Therefore, attempts to regulate or harness the activities of the players in the industry is limited to the code of conducts, which are ideally unenforceable since the associations are basically membership-driven and derive their sustenance from the contributions paid in by these very members,†Omar pointed out.
He called for the empowerment of the fraternity.
THE Uganda Revenue Authority (URA) will dismiss corrupt clearing and forwarding agents because they soil the name of the fraternity, a top official warned last week.
The tax body also warned car bond managers against releasing unregistered vehicles for personal use.
It is alleged that some unregistered posh cars in bonds find their way out, contrary to the customs rules.
“We are still investigating the circumstances under which unregistered vehicles find their way out of bonds and be used on weddings. Some car bond managers use these vehicles to pick their children from school which is wrong,†Sarah Kasheka, the URA acting customs commissioner, told a clearing and forwarding integrity forum in Kampala.
“Please work on your name as we work on ours,†Kasheka told the over 200 agents during a meeting at the Imperial Royale Hotel.
However, the bond managers denied the practice, saying the facilities are managed by URA customs officers, who also keep the keys for bonded unregistered vehicles.
A Nissan Tundura was recently reportedly registered as Toyota Hilux purportedly to pay less taxes against the car valuation guidelines.
Kasheka acknowledged that integrity challenges in customs were manifested in time management, quality of data, system stability, service delivery and customer care.
“There are cases of deliberate incorrect declarations, processing of wrong declarations either knowingly or unknowingly, connivance of staff with agents and importers to evade taxes through misdeclarations of values, classification and quantity under declarations,†said Kasheka.
Charles Kareba, the chairman of Uganda Freight Forwarders Association, said the main focus should be on encouraging compliance through incentives and training.
“If for instance they know I am compliant, then my license should be automatic, but at the end of the year, they vet all of us,†Kareba complained.
He said in instances when the URA computer system breaks down, the agents have no alternative, but to wait yet, they are under pressure from the clients.
“This is what causes people to start looking for short cuts,†Kareba acknowledged.
Kassim Omar, the national chairman of Uganda Clearing and Import Forwarders Association, argued that the clearing and forwarding industry was unique because of its parasitic trading feature and an absence of a regulatory framework that could define the scope and function of its members.
“Therefore, attempts to regulate or harness the activities of the players in the industry is limited to the code of conducts, which are ideally unenforceable since the associations are basically membership-driven and derive their sustenance from the contributions paid in by these very members,†Omar pointed out.
He called for the empowerment of the fraternity.