Uganda Revenue Authority (URA) has warned traders dealing in imports and exports to desist from trading in illegal transactions on Uganda’s border points.
Traders have been told to stop smuggling cargo through non-gazetted channels including individuals and firms that are not licensed by URA to deliver goods.
This comes after several cargo trucks were intercepted during an enforcement exercise through the eastern border at Busia One Stop Border Point which URA has been attributed to the closer of the border to prevent COVID-19.
During the display of the confiscated trucks and assorted merchandise at the offices of URA in Busia on Thursday, URA spokesperson Vincent Seruma warned the public against dealing with unlicensed individuals and clearing firms while importing their cargo to Ugandan destinations which he says has caused losses to traders through paying heavy fines.
He urged traders to formalize their transactions with licensed agents to create a reference, demand assessment notices, pay through banks and demand for clearance documents among other measures.
“Tax payers who entrust money with unlicensed individuals and firms opting to smuggling goods have affected business. The public needs to engage with gazetted channels. We will recover them, levy them and put fines. As URA, we don’t delight in confiscating goods, let us desist from illicit trade to avoid losses,” he said.
Seruma said that URA has embarked on efforts to sensitize the public to make tax payers know their tax rights and obligations to avoid problems that can result from fraud and accumulated liability.
He highlighted that URA this year is encouraging taxpayers to voluntarily disclose their tax positions for unpaid tax which he said has various benefits including incentives like cancelling of penalties.
“URA has recovered UGX 15.9 Billion from tax payers who disclosed their tax positions and fully paid. Let’s take advantage of voluntary discloser of tax positions, you will be extended benefits,” he said.
He added that that with introduction of the digital trucking system, over 175 manufacturers has been registered which he said has guaranteed quality products on the market, protected society, improved tax declarations, reduced counterfeits and promoted fair competition among others
The Assistant Commissioner- Enforcement at URA, Julius Mponooka Nkwasire said that there has recently been high prevalence of smuggling at porous border routes after the closer of borders especially from Kenya where traders have been finding difficulties in transporting their cargo through unofficial channels.
He said that they have enhanced enforcement measure including cross border information sharing, intelligence to intercept cargo loading illegally among others.
“Investigations have revealed that in the last 2 months, there has been high smuggling through porous border points. Small scale traders in Kampala send money through mobile money to suppliers in Kenya who load cargo to ungazzetted areas then handed to Ugandan trucks,” he said.
URA has surpassed its tax revenue collection targets for the months of July and August despite the COVID-19 pandemic has affected the economy.
