URA recoups Shs 11bln from penalties, smuggled goods
A preliminary report by the tax body indicates that by end of March 2026, more than Shs 4.7bln had been collected from penalties imposed on traders attempting to evade taxes through under-declaration, concealment and other fraudulent means
KAMPALA, April 22, 2026 — The Uganda Revenue Authority [ URA ] has recovered at least Shs 11.3 billion from penalties and taxes on smuggled merchandise seized at various entry points during the 2025/26 financial year.
A preliminary report by the tax body indicates that by end of March 2026, more than Shs 4.7bln had been collected from penalties imposed on traders attempting to evade taxes through under-declaration, concealment and other fraudulent means. These enforcement efforts also led to the recovery of an additional Shs 6.6bln in legitimate taxes.
URA’s Supervisor for Planning in the Customs Department, Grace Musooko, said a total of 11,834 seizures had been recorded so far this financial year.
“In total, nearly Shs 11.3bln was recovered in penalties and taxes that would otherwise have been lost,” Musooko said. “This is not just about revenue, it is about ensuring fairness for traders who comply with the law.”
Most of the intercepted smugglers were using large trucks carrying mixed consignments, where goods such as rice, mobile phones, perfumes and jewellery were concealed within low-value or non-taxable items including textiles, garments, wheat flour and used clothes under the guise of transit cargo.
Others used boats, particularly those dealing in fuel, petroleum products, perfumes and cigarettes, while some attempted to smuggle goods across border points using wheelchairs. A number of individuals were also intercepted on foot, using informal routes through border communities.
“Rice alone accounted for over 2,000 seizures. Textiles followed with nearly 800 cases, while wheat flour and garments were also significant,” Musooko noted. “Mobile phones, although fewer at about 178 seizures, generated the highest recovery value of more than Shs 1.8bln.”
Regionally, enforcement operations recorded 484 seizures in the Central region, largely involving small but high-value items. The South Western region registered 876 seizures, while West Nile and Northern Uganda recorded 263 and 281 cases respectively.
Musooko said URA adopted a more targeted enforcement approach this financial year, conducting 15 intelligence-led operations.
“These were not random roadblocks but carefully planned actions based on data, surveillance and shared intelligence,” she said. “Each operation generated over Shs 30 million in revenue from dutiable goods or fraud detection. It was targeted enforcement with less noise and greater impact.”
She also commended the adoption of new technologies that have strengthened enforcement efforts, including the Regional Electronic Cargo Tracking System [RECTS], which has improved monitoring of transit goods and helped detect cargo diversion that previously went unnoticed.
The introduction of body-worn cameras has enhanced transparency and strengthened evidence collection during inspections, while integration of weighbridge data and vehicle diagnostic tools has helped expose inconsistencies in cargo declarations.
In addition, the Revenue Police Surveillance Department has been equipped with cameras to monitor suspicious movements along known smuggling routes. Cross-border collaboration has also improved, with the Kenya Revenue Authority deploying joint patrols to tighten oversight along shared borders.
“Information sharing between Uganda and Kenya has significantly reduced the loopholes that smugglers previously exploited, such as falsifying vehicle details or rerouting transit goods undetected,” Musooko said.
Despite these gains, she noted that porous border points continue to pose challenges.
“Limited resources mean officers must carefully prioritise high-risk consignments, while smugglers are constantly adapting, changing concealment methods and transport patterns,” she added.
Musooko said URA is continuing to invest in staff development, with officers receiving training in valuation, verification and document inspection to enhance their ability to detect fraud.
“As smuggling methods become more sophisticated, our officers must continuously upgrade their skills,” she said.
The authority plans to strengthen partnerships, invest further in technology and build staff capacity as it intensifies efforts to combat smuggling and other forms of illicit trade.
https://thecooperator.news/ugandas-annual-export-revenue-rises-over-83-percent-in-december-2025/
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