URA suspends auction of goods

The Uganda Revenue Authority (URA) has suspended auctioning of goods that have outlived their lifespan in custom bonded warehouses.

Under the East African Community Management Act, imported goods have a mandatory warehousing period of six months.

Beyond this period, such goods are lined up for public auction after placing advertisements alerting the respective owners to respond by paying the due taxes.

John Musinguzi, the URA commissioner general, said this is among other interventions they have in place to redeem traders from the impact of COVID-19.

He said traders will be given time to mobilise funds to offset their due tax liabilities.

URA also negotiated with Kenya Ports Authority (KPA) for a grace period of free cargo clearance for Ugandan-bound cargo from nine to 14 days, which is already in effect.

Traders have applauded the initiative, saying it has been long overdue as some businesses had stagnated and others totally collapsed as a result of the COVID-19 impact.

"COVID-19 has not only impacted traders, but also revenue collections, mainly in the months of April, May, and June 2020," Musinguzi said.

He, however, said from July to date, revenue collection has been up to expectation. He said they are looking forward to yet another task of collecting sh12b between January and June 2021.

Francis Kanakulya, the spokesperson for Associated Motor Dealers-2015, said the car import industry was among businesses affected by COVID-19.

"URA's intervention will save importers as some have been selling off vehicles cheaply when their lifetime in bonded warehouses nears an end," Kanakulya said.

Godfrey Katongole, the chairman of Kampala Arcade Traders Association, said as URA looks into issues surrounding ports, local traders need to be bailed out as well.

He said income tax, trading licences, and rent are among overheads frustrating traders as they recover from the effects of the pandemic.