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Uganda textile importers fall out with the govt

Aug 24, 2021
Uganda textile importers fall out with the govt

Uganda

Garments and textile fabrics importers of Uganda, under Kampala City Traders Association (Kacita), have threated industrial action due to the government’s refusal to waive tax requirements.

The taxes have been imposed on goods whose orders had been placed before implementation of the new tax measures.  Thadeus Musoke Nagenda, acting chairman, Kacita, said that the new tax measures were not only in breach of General Agreement on Tariffs and Trade, which stops unfair increase, but were aimed to push out some traders with the intention of creating a clique of monopolistic importers, who would use the new measures to disguise as local manufactures.  

Kacita also argued that it was important that government maintains the 25% levy for both goods brought in before and after the new tax policy implementation. 

Nagenda also said that they would give the government a two-week ultimatum to ensure that the tax rates are harmonised, and in failure to do so, Kacita, together with its garments members, will have their shops closed down with effect from September 01, 2021 or opt for any other alternative means of showing dissatisfaction. 

Traders, through Kacita, United Attire Traders Association, United Tailors Group and Manufacturers Association, among others, have since May petitioned government to review taxes on imported garments, which, under the new regime were revised upwards from 25% to 35%.

Kacita also noted that at least 97% of garments and fabrics that are consumed in Uganda are imported and therefore the industry will be adversely affected as well as impact the larger economy. 

Source: Daily Monitor

Image Source: Google Images

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