MUTUKULA, November 17, 2023 – The Uganda Revenue Authority [ URA ] is intensifying surveillance at porous borders to curb the smuggling of goods from Uganda’s neighbours.
URA Commissioner General, John Rujoki Musinguzi said the exercise in which speed boats, drones, and intelligence are being used, is aimed at minimising loss of tax revenue at the porous borders between Uganda and her neighbours. ‘’We are trying to curb all forms of smuggling so that we can minimise revenue losses,’’ he said in his report.
For years, URA officials has been battling smugglers at porous borders shared between Uganda with Tanzania. Officials also cite cases of smuggling at major border posts of Busia, and Malaba. Other border points used to smuggle goods into Uganda are at Mirama hills [Ntungamo district], Katuna [Kabale district], Mpondwe [Kasese district], Lwakhakha [Namisindwa district], Pakwach [Packwach district], Cyanika [Kisoro district, and Elegu [Amuru district].
He revealed that URA shall continue to deploy and conduct non-intrusive inspection of goods [NII] across major border posts.
Musinguzi said they want to improve on international trade tax collections. He noted that international trade tax collections for first quarter of FY 2023/24 amounted to Shs 2,342.35bln realising a growth of Shs 100.12bln [4.47 percent] compared to the same period last year.
He said growth was registered in customs tax, temporary road license, withholding tax, surcharge on imports, and export levy.
Musinguzi also explained that in the first quarter of this financial year from July to September, the net revenue collections were Shs 6,015.56bln, recording a growth in revenue of Shs 607.47bln [11.23 percent] compared to the first quarter of FY 2022/23. The collections accounted for 20.59 percent of the annual target.
While at the launch of the URA Digital Strategy in Kampala last month, the Minister of Finance Planning and Economic Development, Matia Kasaija challenged URA to improve Uganda’s tax to GDP ratio from the current 14.5 to at least 20 percent in the next 3 to 4 years.
Meanwhile, URA Customs Office at Mutukula One-Stop Border Post has acquired an advanced machine for testing imported rice and determining its country of origin. The machine will help to identify rice imports from Tanzania and other countries outside the East African Community [EAC]
In October this year, about 100 trucks suspected of carrying mixed rice from Pakistan were impounded at Mutukula One-Stop Border Post for three weeks, causing traders to protest.
They said tests done by URA were wrong since they had documents indicating that their rice originated from Tanzania.
“It was unfair for URA to hold our trucks because we had clearance documents from Tanzania authorities confirming the origin of the rice from their country’’ one of the rice traders, Hadijah Nabayinga, said.
However, URA Commissioner in Charge of Field Services, Sylvester Kiwanuka explained that they have had revenue losses at Mutukula One-Stop Border because some rice traders do not want to declare the rice imported from Pakistan through Dar es salaam in Tanzania.
According to URA, a number of rice traders have been dodging import duty yet traders importing rice from outside the EAC, under the East African Community Common External Tariff, are supposed to pay 75 percent import duty.
Kiwanuka said that the rice imported from countries within the EAC are exempted from the import duty but traders pay withholding tax of 6 percent.
In an effort to create harmonious trading between Uganda and Tanzania, Kiwanuka said they agreed with the traders to clear all the trucks carrying rice upon payment of withholding tax.
‘’Uganda Revenue Authority and the government of Tanzania want to reinforce and safeguard the interests of local rice producers and ensure fair trade among the East African countries,’’ Kiwanuka explained.
https://thecooperator.news/ugandan-traders-petition-govt-as-tanzania-bans-rice-and-maize-exports/
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