GIDEON T
Traders in Kabale District have voiced strong concerns over what they describe as excessive and unsustainable taxation by the Uganda Revenue Authority (URA), warning that the growing tax burden could force many small businesses to close.
The concerns were raised during a consultative meeting held yesterday at Kirigime Guest House in the Southern Division of Kabale Municipality. The session, organized by the Kabale Municipality Traders’ Association in collaboration with the Uganda National Traders’ Alliance (UNATA), brought together business owners from different sectors to discuss rising tax-related grievances.
Taremwa Nicholas Magufuli, a produce trader, criticized what he called a system of double taxation. He explained that traders importing goods from neighboring East African countries are taxed both at the border and again within local markets, making it difficult to remain competitive.
“We pay taxes at the border, and then URA still overtaxes us in the local market. Other countries in the region charge less, but here the burden is just too heavy,” said Magufuli.
Textile trader Kyampaire Gertrude echoed the frustrations, citing slow sales and high taxes as a major setback for small businesses. “There are days when we don’t sell anything, yet we are still required to pay high taxes,” she said, urging trader associations to intervene on their behalf.
Traders are now calling on UNATA and other stakeholders to engage with URA and push for reforms aimed at supporting small and medium enterprises (SMEs) instead of stifling them.
In response, Turyamureba Michael Byamungu, Chairperson of the Kabale Municipality Traders’ Association, advised traders to meet their tax obligations on time to avoid penalties and potential misunderstandings with tax authorities.
“It is the duty of every trader to pay taxes. But when delays occur, tax collectors may assume we are avoiding our responsibilities, which leads to further over-taxation,” Byamungu said. He pledged to engage relevant authorities on issues surrounding cross-border taxation and increasing tariffs.
Godfrey Katongole, President of the Uganda National Traders Alliance, acknowledged the traders’ concerns and assured them that their grievances are among the reasons why President Yoweri Museveni recently commissioned national consultation tours.
He encouraged business owners to join local associations to strengthen their voice and vowed to present their concerns to the President in hopes of achieving meaningful tax policy reforms.
