Honey traders in Arua District have asked the Uganda Revenue Authority (URA) to lower the customs value of imported honey, which they believe is currently too high. Late last year, the URA set a new standard for the value of imported honey at USD 0.8 per kilogram, a significant increase from the previous rate of USD 0.07 per kilogram that traders had been accustomed to.
Customs values are used to determine the taxes for imported goods to ensure fair taxation. Arua is known for its original honey, much of which comes from the Democratic Republic of the Congo.
During a meeting between the URA and the Honey & Bee Traders Association in Arua, Obeta Moses, the Chairperson of the Business Community, explained that there had been a previous agreement with the URA in 2021 to value a 20-liter jerrycan of honey at UGX 5000.
“We did not agree to the new rate of USD 0.8 per kilogram. Most of the traders affected are women who face various challenges. Harmonizing the relationship with the URA will greatly benefit the business industry,” Moses said.
He urged the URA to engage all stakeholders to avoid misunderstandings.
James Mulhondi, who is in charge of Lia Customs, explained that the initial rate of USD 0.07 per kilogram for crude honey was set to combat smuggling. However, due to changes in tax policy and the need to standardize honey valuation across the country, the rate was increased to USD 0.8 per kilogram.
“This change has caused traders to avoid the Lia-Congo border route, affecting revenue collection, even though the market is still flooded with honey,” Mulhondi noted.
He suggested organizing a joint meeting to find workable solutions.
Ajiga Mansur, who is in charge of enforcement in Arua, urged traders to cooperate with the URA and provide proper documentation for imported goods to avoid penalties.
“We are open to dialogue when you approach us, but you also need to help us identify honey smugglers confidently,” Ajiga emphasized.
Lomuria Thomas, the supervisor of the Stakeholder Intervention Project in the region, echoed this sentiment. He called on traders not to protect smugglers.
“All leaders should actively share accurate information about the various products in the region. Do not shield smugglers because the law will eventually catch up with them.”
To address the smuggling issue in the district, stakeholders have called for a review of the tax policy on honey imports and a focused approach to managing smugglers, particularly those dealing with fuel, cigarettes, honey, and other products.
