The National Entrepreneurs and Traders Association (NETA-Uganda) has issued a strongly worded warning over what it describes as three overlapping policy actions that could threaten enterprise survival and economic stability.
In a statement released Tuesday, the association’s national chairperson, Dr Thadeus Musoke Nagenda, criticised the ongoing enforcement of the Trade Order, proposed tax measures for the 2026/2027 financial year, and the Sovereignty Bill currently before Parliament.
While acknowledging the need for more organised urban trade, NETA-Uganda cautioned that the current enforcement approach risks harming small businesses if not handled carefully.
“Implementation must be balanced to avoid destroying livelihoods,” Nagenda said, calling for a structured and phased relocation of traders operating in non-gazetted areas, with at least 90 days’ notice.
He warned that abrupt evictions could have severe economic consequences. “Abrupt evictions destroy stock, capital, and livelihoods,” he said, urging authorities to first establish designated alternative trading spaces before enforcement begins.
The association also called for exemptions for essential service providers, including mobile money agents and airtime vendors, noting that they play a critical role in daily commerce and financial inclusion.
NETA-Uganda further raised concerns over proposed tax increases on essential commodities such as fuel, cement, and sugar, describing the measures as ill-timed and potentially damaging to business growth.
“Tax hikes are ill-timed,” Nagenda said, citing proposed increases including fuel rising from Shs1,550 to Shs1,750 per litre and cement doubling from Shs500 to Shs1,000 per bag.
He warned that such increases would raise production and transport costs at a time when businesses are already grappling with disruptions linked to the Trade Order enforcement.
As an alternative, the association proposed raising the VAT registration threshold to Shs1 billion annually, significantly higher than the proposed Shs250 million.
“This is necessary to protect genuine SMEs, reduce compliance burdens, and encourage formalisation without punishing growth,” Nagenda said.
NETA-Uganda also urged the government to prioritise improving compliance and expanding digital tax systems instead of introducing what it described as punitive new taxes.
The association expressed its strongest opposition to the proposed Sovereignty Bill, warning that it could have far-reaching consequences for Uganda’s economy and financial systems.
“NETA-Uganda categorically rejects it in its current form,” Nagenda said, describing the bill as anti-enterprise, anti-investment, and a direct threat to financial stability.
Among the key concerns raised is the potential impact on diaspora remittances, estimated at more than $1.4 billion annually.
“Labelling Ugandans abroad as ‘foreigners’ threatens a vital source of seed capital for MSMEs and school fees for entrepreneurs’ families,” he said.
The association also warned that the bill could trigger a tightening of credit conditions, noting that financial institutions rely on remittance flows to assess risk and extend lending.
“Banks and microfinance institutions rely on remittances. Legal risk will force de-risking, cutting working capital loans,” Nagenda said.
He added that entrepreneurs engaged in cross-border trade could be unfairly affected, warning that importers, exporters, and online traders risk being treated as security threats for conducting normal business transactions.
NETA-Uganda has called on the government to halt the proposed tax measures, revise the Trade Order enforcement strategy, and withdraw the Sovereignty Bill in its current form.
The association also urged the convening of an urgent economic stability summit bringing together key stakeholders, including the private sector and financial institutions.
“We await urgent action from Parliament and the Executive,” Nagenda said, warning that failure to respond could prompt further steps from the business community.
“Failure to act will compel us to consider a peaceful demonstration,” he added.
Despite its concerns, the association reaffirmed its support for national development, stressing the need for a balanced approach.
“NETA-Uganda supports an orderly, prosperous Uganda. But order must not destroy the entrepreneurs who pay taxes, employ youth, and drive growth,” Nagenda said.
