Smugglers evolving with new Tactics to dodge taxes

In spite of the tight security at the different borders, smugglers are growing new tactics to beat customs personnel at every checkpoint. Last Friday the smugglers in truck registration number UBA 174C coming from Eastern Uganda hatched a smarter way of concealing their contraband goods. They almost succeeded!

Acting on intelligence, this trick was burst by customs officers via Kayunga road. The truck was checked severally until voids were discovered on a wooden compartment stashed with different garments.

The culprits took off leaving behind their goods. The truck has been impounded at the Nakawa head office and physical verification to establish the details of other concealed goods is ongoing.

Addressing the Press on Wednesday this week, Julius Nkwasire, the Assistant Commissioner of Enforcement explained that other recoveries in the month of July were interceptions done on interstate buses – another new area that people are using to smuggle through buses leaving Uganda to other countries. These were intercepted recently with assorted items like deodorants, meters of printed viscose material, cosmetics with hydroquinone & mercury, electricals, meters of plain polyester materials, ladies’ wrappers, and sharia dresses.

“If you have a truck, be sure of the driver you are recruiting and guide them on what do and keep monitoring your truck. Otherwise, if we get smuggled goods in it [truck], you will forfeit to government,” Nkwasire warned.

Nkwasire also added that those continuously engaged in illicit trade will be penalized to ease facilitation for compliant taxpayers. The enforcement operations will also continue to ensure that Customs collects its due revenue this financial year of UGX 9.7 trillion.

And in order to ensure the right taxes are paid, so far UGX 2.8 billion has been recovered this month of July from top smuggled items like garments, spare parts, textiles, shoes, hardware, and electronics, among others.

Last financial year alone (2021/22), enforcement operations contributed UGX 82 billion; of this, dutable value was USD 7,700 million and UGX 8 billion was recovered from fines & penalties.

Although non-declaration and outright smuggling are still key offences in smuggling, Nkwasire revealed a number of strategies to curb the vice. These include using intelligence networks, coordinating with other government agencies, information sharing with key stakeholders, and enhancing the technical capacity of URA staff. URA is also intensifying tax education awareness, especially on the dangers of smuggling to the individual, the community, and the economy.

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