Overview:

Kampala's traders have ended their strike after Prime Minister Robinah Nabbanja met with them and pledged to address their key grievances, including tax policies and foreign involvement in retail.

KAMPALA, UGANDA — Traders in Kampala have called off their strike and reopened their shops following a meeting with Prime Minister Robinah Nabbanja, who pledged to address their concerns with the Cabinet.

The strike, which began Tuesday over a range of tax-related issues, led to the arrest of several traders. The meeting, held Wednesday at Statistics House, was initially adjourned after traders demanded the release of their colleagues but later resumed.

During the meeting, traders presented eight key grievances, including the weight tax system, delays in container clearance, high customs valuations, and the involvement of foreign nationals in retail trade. Nabbanja assured the group that the government would take their issues seriously.

“We have agreed to reopen our shops on condition that all the resolutions that have been made…are implemented,” said Kampala City Traders Association acting chairperson Issa Sekitto after the meeting.

Government and Traders Agree to Take Action

Nabbanja promised to present some issues to the Cabinet for policy review, while others would be handled immediately.

  • Weight Tax: Nabbanja said she would present the controversial weight tax system for textiles to the Cabinet on Monday for a possible amendment.
  • Container Clearance: The Uganda Revenue Authority (URA) was directed to form a six-member joint committee with trader representatives to investigate clearance bottlenecks. The committee, which includes Sekitto, Margaret Tumusiime, and Ismail Kaddu for the traders and Robert Kalumba, Asadu Kigozi Kisitu, and Sheila Kyomugisha for URA, was given one week to submit its findings.
  • Foreign Nationals in Retail: Nabbanja scheduled a follow-up meeting for next Tuesday with ministers of trade, internal affairs, local government, and Kampala metropolitan affairs to discuss enforcement of existing laws.
  • Customs Valuations: URA maintained that valuation discrepancies often stem from forged invoices but assured traders that genuine documentation would be honored and adjustments made.
  • VAT and Disparities: Issues concerning the low value-added tax (VAT) threshold and tax disparities were referred to the Cabinet for further discussion and potential legislative reforms.

On the pre-export verification of conformity (PVoC) system, URA Commissioner General John Musinguzi said earlier delays were due to system upgrades that have since been resolved. He added that URA would ensure the fee is applied per container, as was the previous practice.

Additionally, URA urged traders to report any officer misconduct through official channels shared during stakeholder meetings.