Kampala, Uganda | THE BLACK EXAMINER | Members of the Kampala Rice Traders Association are poised to take legal action against the Uganda Revenue Authority (URA) in response to the proposed 18% tax on rice imports from Tanzania. The association’s secretary, Robert Ssentongo, has announced their intent to challenge the tax and seek compensation for rice seized by the URA for a two-week period.
The traders argue that this new tax is not stipulated in the provisions of the East African Community Treaty. In addition to their legal threats, they are highlighting the potential adverse effects on consumers. The proposed import duty and a 75% Value Added Tax (VAT) could lead to significantly higher rice prices, burdening the average consumer.
In light of these concerns, the traders are urging the URA to engage in collaboration to find a resolution instead of resorting to heavy taxation and threats.
The dispute over the 18% tax on Tanzanian rice imports has escalated into a legal standoff between traders and the Uganda Revenue Authority. The potential impact of this tax on both traders and consumers has triggered a vigorous debate, prompting calls for a more cooperative approach to resolve the issue.
This situation follows the URA’s impounding of 100 trucks carrying rice from Tanzania at the Mutukula border in Kyotera District, causing significant traffic disruptions and hindering regular business activities at the border point. Robert Ssentongo, the association’s secretary, has stated their intention to seek compensation for the spoiled rice due to the URA’s actions.
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The impoundment of these trucks has had a severe economic impact, and traders are frustrated with the situation. Some traders have explained their difficulties in differentiating between rice from Tanzania and other regions. They contend that the URA’s equipment is insufficient for accurate identification and has even misidentified rice from Uganda as being from Pakistan.
The traders are urging the URA to collaborate with them to resolve the ongoing issue instead of resorting to heavy taxation and threats.
