By Akinyi Winiefred
The Uganda Revenue Authority recently embarked on the process of amending its valuation database to ensure uniformity in the customs values of imported goods. Inorder to ensure smoothness in this process, the tax body reached out to different stakeholders to get their input.
It was against this background that URA met with representatives from the textile industry. The purpose of the meeting was to update the industry players on the valuation database change and to discuss the difficulties they are having with the valuation procedures.
Fred Sekimpi, the Chairperson of the Uganda Tailors Association expressed concern about the rigid tax laws, “arrogance of officers,” the 35% import duty on imported clothing and textiles, and smuggling which he said creates discrepancies and unfairness in the market.
“As tailors, we are the end manufacturers in the textile and garments industry, so with the valuation of textiles going up, we are struggling to buy fabric as it is expensive. As a result, importers will not import commodities that are not being consumed on the market,” he said
Sekimpi also expressed dissatisfaction with the protracted appeals process, and delays by the Document Processing Centre and the Uganda National Bureau of Standards, alleging that these delays negatively impact their businesses.
In response, Dr. Elimeleki Acidri, the supervisor of customs, noted that URA resolved to engage different stakeholders to mitigate challenges like unfair valuation, under-declaration by traders, and outright smuggling of garments and textiles, which is affecting traders’ cash flow and markup.
Acidri asked the traders to report to the URA any attempts at tax evasion. “Since customs revenue collection is a significant source of national revenue, it is crucial to identify customs value fraud,” he added.
His words were a comfort to traders who thanked URA for including them in the database update process and expressed hope that the use of the revised values will guarantee equitable treatment for all and guarantee that everybody pays their fair share of taxes.
“I convey my appreciation to URA for your efforts in involving us in this process. We now have an assurance that issues of undervaluation or overvaluation in this industry will be mitigated,” Joseph Wasswa, the Head of the United Attire Traders Association (UATA) stated.
