KAMPALA, Uganda (UGNEWSLINE) – Kampala city traders, under their umbrella body, the Kampala City Traders Association (KACITA), have threatened to close their businesses if the government, through the Uganda Revenue Authority (URA), fails to address their concerns over what they describe as a harsh and burdensome tax regime.
The traders issued the warning during an emergency meeting held on Thursday, November 5, 2026, at KACITA’s Royal Complex headquarters in Kampala. The meeting attracted more than 400 traders and leaders of major traders’ associations from across the country.
KACITA Chairperson Hajji Issa Ssekito told the gathering that URA Commissioner General Musinguzi Rujoki had reportedly agreed to meet the traders next Tuesday to discuss their tax-related grievances.
“Thank you for turning up at such short notice for this impromptu meeting. The Commissioner General has granted us a special meeting next Tuesday to discuss issues surrounding the harsh tax regime, which is slowly but steadily pushing many of our members out of business,” Ssekito told the traders.
The meeting brought together leaders of various traders’ associations to harmonise their concerns and agree on a common position ahead of their anticipated engagement with URA officials.
During an open discussion, traders expressed dissatisfaction with what they described as harsh and unfair revenue collection practices by URA, despite their claims of being tax-compliant.
Among the major concerns raised were the alleged arbitrary impounding of cargo trucks over documentation and clearance issues, deliberate delays in customs administration, challenges associated with the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), and what they termed excessive taxation.
Traders issue directives ahead of URA meeting
In a series of resolutions, the traders agreed that all cargo clearing agents should temporarily refrain from processing cargo entry documents, commonly referred to as IM4 forms, at customs points until their concerns are addressed.
They argued that proceeding with the clearance process could expose traders to additional tax assessments before the outstanding disputes are resolved.
The traders also resolved to write to landlords of commercial buildings, asking them to support any decision to close businesses by ensuring that no shops are opened should the planned industrial action be implemented.
Additionally, they tasked URA to provide traders with a comprehensive list of applicable merchandise tax rates to enable them to accurately calculate their tax obligations and determine the expected profitability of their businesses.
The traders further demanded that URA takes responsibility for warehouse charges incurred when cargo is impounded or delayed during the clearance process, arguing that traders should not bear additional costs arising from administrative delays.
Shop closure threat
The traders warned that failure by URA to address their demands could force them to close their shops as a form of protest.
They resolved to hold another meeting on Wednesday morning following their engagement with URA officials to receive a report on the outcome of the discussions and determine their next course of action.
The traders appealed to URA to adopt a more considerate, transparent and fair approach when dealing with the business community, arguing that the survival of traders is essential to the country’s economic growth.
They also reminded the tax authority that traders are key stakeholders in revenue generation and deserve to be treated fairly and respectfully during tax assessment and collection.
