Police has arrested several traders in downtown Kampala for participating in the planned countrywide strike against Uganda Revenue Authority (URA’s) tax policies and the alleged tax free operations of Chinese businesses.
The traders launched the sit down strike this morning by closing their shops in protest against URA’s tax collection system, which they claim has caused delays in clearing their containers in Nairobi.
While most arcades in the city centre and shops along Nabugabo Street remained closed with traders seated in the shop verandahs, Police arrested those seen blowing whistles and urging others to join the strike.
Hajji Issa Sekitto, the Acting Chairperson of KACITA while addressing journalists called for lower customs duties, reduced rental charges, and other tax concessions.
“We’re going through tough times, yet many refuse to acknowledge it. I hold the trade leaders accountable; instead of uniting traders, they’re working to divide and break them apart,” he said.
The sit down strike stems from the recent changes to import duties that took effect on July 1, sparking outrage among traders.
Under the new tax regime, the import duty on fabrics has been reduced to $2 per kilogram or 35% of the value whichever is higher, down from the previous $3 per kilogram. Similarly, the duty on imported garments has been lowered to $2.5 per kilogram or 35%, down from $3.5 per kilogram.
Despite appearing to be reductions, traders argue that the shift to weight-based taxation continues to burden them financially.
The visibly angry traders have further demanded for the resignation of URA Commissioner General John Musinguzi Rujoki.
