Traders call off strike as Government assures them of addressing their concerns

By: Ismael Kasooha

KAMPALA

Traders in Kampala have called off their strike and reopened their shops following a meeting with Prime Minister Rt. Hon. Robinah Nabbanja, who pledged to address their concerns with the Cabinet.

“As government we shall play our role and address the issues raised by the traders and they have agreed to open shops immediately,” said Nabbanja.

The strike, which began Tuesday over a range of tax-related issues, led to the arrest of 17 traders who were stopping other traders from opening their shops.

The meeting chaired by the Prime Minister took place at Statistics House in Kampala.

However, it was initially adjourned after traders demanded the release of their colleagues but later resumed in the afternoon and ran until late in the evening.

The Commissioner General URA, John Musinguzi (standing) addressing traders on Wednesday at UBOS Headquarters

During the meeting, traders presented eight key grievances, including the weight tax system, delays in container clearance, high customs valuations, and the involvement of foreigners in retail trade.

Nabbanja assured the group that the Government would take their issues seriously.

“We have agreed to reopen our shops on condition that all the resolutions that have been made are implemented by the government,” said Kampala City Traders Association acting Chairperson, Issa Sekitto.

Nabbanja said that some of the issues raised are policy related that require more time and consultations and promised to present the issues to Cabinet for policy review while others would be handled immediately.

Hereunder are some of the resolutions on the issues raised by the traders:

Weight Tax:  Nabbanja said she would present the controversial weight tax system for textiles and garments to the Cabinet on Monday for review.

Container Clearance: A Seven-member committee was instituted to handle the delays of clearance of containers. The committee comprises of 3 traders’ representatives, 3 URA staff and one from UNBS. The committee was given a one-week period to have resolved the impasse and report back to the Prime Minister.

The members on the committee include Issa Sekitto, Margaret Tumusiime, and Ismail Kaddu for the traders, Robert Kalumba, Asadu Kigozi Kisitu, and Sheila Kyomugisha for URA.

Foreign Nationals in Retail: Nabbanja assured the traders that she would schedule a follow-up meeting for next Tuesday with Ministers of Trade, Internal Affairs, Local Government, and Kampala Metropolitan Affairs to discuss enforcement of existing laws.

Customs Valuations: The Commissioner General URA, John Musinguzi said that valuation discrepancies often stem from forged invoices but assured traders that genuine documentation would be honored and adjustments made.

VAT and Disparities: Issues concerning the low value-added tax (VAT) threshold and tax disparities were referred to the Cabinet for further discussion and potential legislative reforms.

On the pre-export verification of conformity (PVoC) system, URA Commissioner General said earlier delays were due to system upgrades that had since been resolved. He added that URA would ensure the fee is applied per container, as was the previous practice.

End