The Uganda Revenue Authority (URA) is currently in the final stages of negotiations with the Insurance Regulatory Authority (IRA) to establish a framework aimed at enhancing the safety of marine cargo. This initiative involves the introduction of compulsory marine cargo insurance, a move intended to safeguard imported goods during transit.
Abel Kagumire, the Commissioner of the Customs Department at URA, revealed this development during his attendance, alongside Sarah Chelangat Muzungyo, the Commissioner of Domestic Taxes, at the Insurance Innovations Awards 2023 held at the Serena Hotel Kampala.
According to Kagumire, URA has entered into a memorandum of understanding (MOU) with IRA to develop local marine insurance solutions. The primary objective is to ensure cargo safety and accurate declarations, thereby enhancing revenue contributions to the government.
“We are on track to commence this initiative on April 1, 2024. The primary challenge remaining is the integration of URA’s web portal interface with that of IRA to facilitate the charging of marine insurance for all goods imported into Uganda,” Kagumire elaborated.
He further emphasized that the implementation of compulsory marine cargo insurance will not only enhance revenue valuation but also improve compliance among traders. By ensuring that insurance premiums are based on the actual value of goods, this initiative aims to mitigate risks associated with cargo transportation.
In a related development, Hon. Henry Musasizi, the Minister of State for General Duties, lauded the significant growth in domestic revenue contributions by insurance bodies. He noted an increase from 116 billion to 200 billion Ugandan Shillings, attributing this positive trend to the collaborative efforts between tax authorities and insurance companies.
Musasizi underscored the importance of this revenue increment, highlighting its implications for national development. He emphasized that the additional revenue would facilitate the construction of essential infrastructure such as schools, hospitals, and roads, as well as the recruitment of healthcare professionals, ultimately enhancing public service delivery.
Meanwhile, the Rt. Hon. Thomas Tayebwa, Deputy Speaker to the Parliament of Uganda, emphasized the crucial role of small and medium-sized enterprises (SMEs) in driving economic growth. He stressed the need for local solutions to address Uganda’s socio-economic challenges, urging support for SMEs to foster innovation and job creation.
Drawing parallels with Germany’s economic model, where a significant portion of exports originate from SMEs, Tayebwa highlighted the potential for small businesses to grow into key players in the national economy. He emphasized the importance of nurturing entrepreneurship and vocational education, envisioning a future where Uganda’s youth are empowered to become job creators rather than job seekers.
