This archive report was first published on 19 October 2019.
On October 19, 2019, the Uganda Revenue Authority (URA) issued a notice that sparked a heated debate among importers in Uganda.
The notice, signed by URA's commissioner customs, Dickson C Kateshumbwa, proposed a change in the payment of customs duty from the current system to a new one where payments are made at the port of entry.
According to the notice, all payments for home consumption declarations to Customs shall be valid for only 72 hours from the date of assessment, as opposed to 21 days reflected on payment registration notices.
Importers, however, are opposed to this proposal, citing concerns that it will put pressure on them to pay taxes immediately, without the option of using warehouse services to store their goods while they look for funds to clear their tax obligations.
Everest Kayondo, chairman of the Kampala City Traders Association, expressed concerns that the new directive will kill warehouse businesses, saying, “People have already paid for warehouses and some do not have the cash to pay taxes, some have also invested in warehouses. Is URA killing warehouse businesses?”
The URA's proposal is aimed at harmonizing the country's Customs rules with those of the East African Community, guided by the EAC Customs Management Act 2004 and the EAC Customs management regulations 2010.
