Tensions are simmering once again between Kampala’s business community and the Uganda Revenue Authority (URA), as traders decry a new tax directive that prohibits the consolidation of imported goods under one container for collective tax clearance.
Previously, it was common practice for traders—especially small-scale ones—to import goods under a single container led by a designated container leader.
These leaders would then distribute the tax burden among the traders, often allowing installment payments with low or no interest.
But under the new guideline, each trader must now clear their merchandise using their individual Tax Identification Numbers (TINs), a move URA says is aimed at plugging revenue leakages.
However, traders argue that URA’s approach is detached from the economic realities on the ground.
“Container leaders have given us a lifeline. They let us pay in manageable bits and help us stay afloat in a tough economy. URA doesn’t offer that flexibility,” said Moses Bagonza, a clothing trader in downtown Kampala.
Others, like William Kaggwa, a dealer in construction materials, acknowledge the directive’s logic but worry about its disproportionate impact.
“This policy won’t hit big traders like us as hard, but small traders who rely on container sharing might be pushed out of business entirely,” he said.
According to the Kampala City Traders Association (Kacita), more than three million traders operate in the city, but only about 10% own containers.
Each container typically accommodates over 40 individual traders—underscoring the significance of the shared model now under scrutiny.
Kacita Spokesperson Thadeus Musoke says the directive came without adequate consultation.
“We need a clear consensus on how taxes should be managed on shared containers. Without that, URA is risking the livelihoods of thousands,” Musoke warned.
Former URA Commissioner Dickson Kateshumba, now a legislator, suggests that the revenue body’s intentions are rooted in the need for transparency and accountability.
“By enforcing individual TIN-based clearance, URA aims to ensure every trader’s import record is traceable and accurate. But the rollout must be consultative,” he said.
Déjà Vu: Echoes of the 2023 EFRIS Protests
This latest clash comes just over a year after widespread protests by city traders over the mandatory implementation of the Electronic Fiscal Receipting and Invoicing System (Efris).
At the time, traders argued they had not been adequately sensitised on the system and that it was being enforced without considering infrastructural and literacy challenges, especially among small businesses.
Protests in April 2023 saw mass shutdowns of shops across Kampala and spilling to the countryside, with Kacita leading negotiations that eventually forced URA into a temporary suspension and review of the Efris rollout.
Many traders now say the new container directive feels like a replay of the same heavy-handedness.
"URA has not learned from the Efris backlash," said a trader from Kikuubo. "You cannot dictate tax policies without understanding how we survive day-to-day. People are just recovering from lockdown losses and inflation."
While URA has yet to issue an official response to the backlash, Kacita is pushing for immediate engagement.
They have proposed the formation of a joint taskforce to review the container clearance model and explore more flexible tax payment mechanisms.
Analysts warn that failure to address these concerns could trigger another round of mass protests, destabilizing business activity in the capital and undermining URA’s broader goal of widening the tax base.
For now, the ball is in URA’s court. But the message from traders is clear: Tax compliance cannot come at the cost of survival.