URA ends group tax clearance to curb fraud

In a bold move aimed at curbing long-standing fraud and exploitation in Uganda’s import sector, the Uganda Revenue Authority (URA) has announced a new directive requiring each importer in groupage shipments to clear taxes individually using their Tax Identification Numbers (TINs).

Speaking at a high-level URA-Traders Dialogue hosted by the Kampala Central Division Arcade Traders Cooperative Society (KACEDAT) at Hotel Africana on Monday, URA Commissioner General John R. Musinguzi described the directive as a game-changer that will restore control to traders and eliminate middlemen who have preyed on the system.

“This reform ensures that no trader will be held hostage by others in group shipments. Every importer will now be able to pay their taxes directly and independently clear their goods,” Musinguzi said.

The move is URA’s latest effort to tackle corruption within the cargo clearing process, where self-appointed “container leaders” have been accused of inflating tax charges and withholding goods from rightful owners. Many small traders say they have lost millions to these brokers.

One such victim, Iga Charles, Executive Director of KACEDAT, shared a personal account of how a container leader delayed the release of his goods for over a year despite full tax payment.

“I lost my capital and almost gave up on business. But now, with this URA policy, we are finally cutting out these exploiters and gaining independence,” Iga said, receiving applause from fellow traders.

Under the new arrangement, each trader in a shared container must be assigned an individual house bill of lading, allowing for independent tax clearance and timely release of goods. URA’s Manager for Warehousing, Kwaligonza Henry, assured traders that paid-up consignments would be released promptly to avoid unnecessary business delays.

The change is part of broader reforms aimed at digitising and decentralising URA’s systems to promote transparency, speed, and fairness. Commissioner General Musinguzi also announced that the bidding and auctioning of unclaimed goods has moved entirely online, removing the human element from selection.

“The system ensures anonymity—bidders remain unknown, and the top offer automatically wins. If they fail to pay, it goes to the next highest bidder,” he said.

Representing the Commissioner of Customs, Dr. Okaka Godfrey Owich said URA is intensifying its internal anti-corruption drive, including the establishment of a dedicated solution desk to address delayed shipments and suspected malpractice.

“We are committed to dismantling the networks that enable bribery and fraud. These reforms are just the beginning,” Dr. Owich said.

As Uganda gears up for deeper regional integration and trade growth, URA’s reforms are being hailed as timely interventions to ensure that small traders—who form the backbone of Uganda’s import business—are protected, respected, and empowered to thrive.