In the last six months, Uganda Revenue Authority (URA) has recovered UGX 9 billion from seized smuggled goods at the Busia border, with 5,226 consignments seized during this period. Paul Katatunga, in charge of enforcement in the eastern region, revealed that smuggling has negatively impacted legitimate traders, leading to the flooding of the market with cheap goods from smugglers.
The enforcement team at Busia has been actively addressing the issue, with a total recovery of UGX 91.3 billion in the previous financial year. Katatunga emphasized the adverse effects of smuggling on local industries, which provide employment and contribute taxes. He warned that smuggling also poses security risks, as arms, explosives, and dangerous drugs can find their way into the country through illegal channels.
The revelations were made during a community meeting (baraza) held at the URA boardroom at Busia one-stop border post. The meeting aimed to encourage interventions to facilitate smooth trade and address the challenges posed by smuggling. URA’s regional manager for the eastern region, Robert William Ogwang, stated that despite support from customs, traders have continued to engage in smuggling.
Ogwang emphasized the need for collaboration between traders and tax authorities to combat smuggling effectively. He noted that URA aims to generate UGX 30 trillion in the current financial year, requiring widespread taxpayer enrollment and sensitization.
Commonly smuggled items into Eastern Uganda include rice from Pakistan, textiles, fabrics, cooking oil, lubricants, pens, engine oil, used shoes, and cement. Stakeholders suggested closing illegal entry points manned by police to curb smuggling and encouraged customs officials to improve relations with the community.
Traders raised concerns about the expensive nature of Ugandan goods compared to neighboring countries, citing examples such as cement being UGX 15,000 more expensive in Uganda than in Kenya. The Busia Resident District Commissioner, Michael Kibwika, emphasized the importance of tax collection for nation-building, urging traders to fulfill their tax obligations.
In addressing the issue of smuggling, Kibwika appealed to enforcement personnel to communicate effectively with taxpayers, while cautioning traders against engaging in conflicts with armed security personnel.
