Ugandan traders decry over-taxation
In a statement issued in Kampala last week, UNATA argued that several government agencies remain disconnected from the everyday struggles of traders, particularly regarding taxes, rent, and transportation costs
KAMPALA, June 15, 2025 –– Traders under the umbrella body, the Uganda National Traders Alliance [UNATA], have accused the Uganda Revenue Authority [URA] of over-taxation and failing to understand the challenges faced by small and medium-scale businesses.
In a statement issued in Kampala last week, UNATA argued that several government agencies remain disconnected from the everyday struggles of traders, particularly regarding taxes, rent, and transportation costs.
UNATA President Godfrey Katongole described the current business environment in Uganda as “hostile”, citing high taxation and inconsistent policy implementation.
“We are seeing numerous cases of unjustified and inconsistent tax assessments by URA,” Katongole said. “Officials impose taxes without adhering to standard valuation guidelines, creating widespread mistrust in the system.”
Speaking at a press conference, Katongole presented examples where identical goods imported by different traders were subjected to vastly different tax levies, suggesting a lack of transparency and adherence to valuation metrics.
“Two people importing the same goods can pay completely different taxes. This is unfair, opaque and unsustainable,” he added. Katongole called on URA to adopt a clear and standardised tax system that would promote fairness, predictability, and better planning for traders.
Ban on groupage importation
Traders have also criticised URA’s recent ban on groupage importation – a method in which goods from multiple small-scale importers are consolidated into a single container to reduce shipping costs.
Katongole warned that the ban has disproportionately impacted small traders, many of whom can no longer afford to import independently and have been forced out of business.
“Instead of penalising the way we organise our imports, URA should focus on ensuring every item is taxed fairly. This policy is strangling the small trader,” he said.
High interest rates
UNATA also raised concerns over what it termed “financial exclusion”, arguing that high commercial interest rates are stifling business growth.
“Our banks have become death traps,” Katongole lamented. “How can businesses grow when borrowing costs are sky-high?”
UNATA CEO Muzamir Kwebila warned that unless interest rates are lowered, many businesses will be driven towards informal lending channels, potentially destabilising the wider economy.
He also highlighted the plight of traders using Entebbe International Airport, citing excessive taxation and bureaucratic hurdles that are further undermining their competitiveness.
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