KAMPALA,Uganda– The President of the Uganda National Traders Alliance (UNATA), Mr. Godfrey Katongole, has called on the government to introduce a five-year tax holiday for indigenous traders as a strategic move to strengthen their capacity and promote sustainable business growth.
Speaking during a stakeholder consultative meeting held at Mambo Restaurant near the Old Taxi Park in Kampala, Katongole argued that while many foreign investors benefit from tax waivers and holidays, local business owners are often left out—an imbalance that undermines domestic trade development.
He expressed concern over recently enacted tax laws, which he claimed were passed without sufficient consultation with local traders. Katongole warned that the new tax regime could negatively impact many small business operators under UNATA’s umbrella.
The meeting attracted over 60 participants from across the country and included representatives from the Ministry of Kampala Metropolitan Affairs, State House, Uganda Revenue Authority (URA), Kampala Capital City Authority (KCCA), and the Uganda Police Force. The primary focus was to discuss the implications of the new tax policies on the business community and explore possible interventions.
Participants urged the government to formulate tax policies that support, rather than disrupt, local trade. They emphasized the need for an enabling policy environment that benefits both businesses and government in achieving the national development agenda.
Traders also voiced strong opposition to URA’s proposed plan to eliminate the groupage system—an arrangement that allows small-scale importers to consolidate goods in shared containers. They warned that removing this system would severely impact small traders who rely on it to manage costs.
In response, Nicholas Aruho, who led the URA delegation, acknowledged the concerns and stressed the importance of regular sensitization meetings to help traders understand and comply with tax obligations.
Participants further criticized the government for failing to regulate landlords who charge excessive rents and operating fees, a situation they said is pushing many small traders out of business due to shrinking profit margins.
Addressing security concerns, ASP Abraham Bakundane, the Officer in Charge of Kampala Central Police Station, pledged continued support to the business community. He promised to collaborate with other security agencies and arcade leaders to enhance trader safety by cracking down on criminal elements targeting both vendors and customers.
Ms. Evelyn Atuhaire, Principal Assistant Secretary for Projects in the Ministry of Kampala Metropolitan Affairs, assured attendees that their concerns had been noted and would be forwarded to the relevant authorities for action. She reiterated the government’s commitment to providing a secure and supportive environment for urban trade.
Meanwhile, Mr. Francis Wabyeyo, representing the Senior Presidential Advisor on Trade Affairs, Ms. Kellen Kiconco, affirmed that the President is aware of the challenges traders are facing and is committed to addressing their concerns.
