Uganda Revenue Authority (URA) has said that through a ministerial directive, textiles and garments which are not manufactured in Uganda and as such cannot be adequately sourced locally have been maintained at an import duty rate of 35%.
These textiles account for 90% of the clearances by the textile and garments traders.
However, Ian Rumanyika, the acting Assistant Commissioner, Public and Corporate Affairs at URA said that the government has waived the specific duty rate of USD 3/3.5 per kg for the 90% of the textile and garments fabrics that are not manufactured in Uganda.
He noted that they are in possession of 125 containers and so far, 9 have been cleared due to the new tax regime as pronounced by the Honourable Minister of Finance Planning and Economic Development.
“Honourable Minister of Finance Planning and Economic Development has waived the specific duty rate of USD 3/3.5 per kg for the 90% of the textile and garments products, therefore these will remain at the 35% rate and as such, there is no increment of the taxes,” he said.
He further explained that the 35% was the tax rate applicable on textile for the Financial Year 2020/2021 and therefore status quo has been maintained.
Meanwhile, City traders under their umbrella body Kampala City Traders Association threatened to close their business in protest over rental arrears accumulated during the lockdown.
The traders are accusing the government of ignoring their plight yet landlords continue harassing them.
The acting association’s chairperson Thaddeus Musoke in a statement said they plan to have the peaceful demonstration from 1st September due to government’s failure to assist the traders despite their outcry and petitions.
He said it is unfair for government to look on as landlords harass them to pay rental arrears yet they were not working during the lockdown.