Earlier today, the Uganda Manufacturers Association (UMA), through its Economic and Business Policy Committee, hosted the Uganda Revenue Authority (URA) Commissioner for Executive Operations, Mr. Abel Kagumire (@AbelKagumire), in a high-level engagement aimed at addressing pressing tax and trade challenges facing Ugandan manufacturers and businesses.

The meeting provided a crucial platform for frank dialogue between the manufacturing sector and URA leadership, with a focus on resolving operational bottlenecks, enhancing compliance efficiency, and improving Uganda’s competitiveness in regional and global markets.

Key Outcomes from the Engagement:

🔹 Tax Dispute Resolutions:
It was agreed that URA must promptly update its ledgers to reflect court rulings on tax disputes. This will prevent the issuance of erroneous tax arrears notices to businesses whose matters have already been legally resolved.

🔹 Customs Procedure Challenges:
Manufacturers raised concerns about delays in clearing imported machinery spare parts due to overly complex Customs Procedure Codes (CPCs). URA committed to reviewing and streamlining the CPC requirements to facilitate industrial operations.

🔹 Audit Burden and Coordination:
The sector highlighted the proliferation of audits exceeding statutory timelines, coupled with poor inter-departmental coordination within URA. These practices were said to strain business operations. URA pledged to improve internal processes and uphold audit timelines as stipulated by law.

🔹 Enforcement on Substandard Imports:
Concerns were raised about low-quality medical imports, particularly substandard medical cotton, which are undermining local manufacturers. URA committed to tightening enforcement at points of entry to curb the influx of such goods.

🔹 Duty Remission Scheme Delays:
Participants noted persistent delays in the Gazette publication of duty remission approvals, affecting the timely importation of inputs. URA assured stakeholders of a renewed effort to expedite Gazette releases to reduce disruptions.

🔹 Digital Tax Stamp (DTS) Costs:
The high cost of implementing Digital Tax Stamps was cited as a key barrier making Ugandan beverages less competitive both locally and in export markets. URA took note and will review the cost burden and its impact on competitiveness.

🔹 Regional Trade Hurdles:
Exporters raised issues with frequent changes in export documentation, such as COMESA certificates, which are disrupting trade flows and causing costly delays. UMA and URA agreed on the need for better inter-agency coordination and regional policy alignment.

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Moving Forward:

The meeting reaffirmed the shared commitment between the manufacturing sector and URA to enhance Uganda’s industrial competitiveness by eliminating bureaucratic inefficiencies, promoting transparency, and fostering a more enabling business environment.

UMA will continue to engage URA and other regulatory bodies to ensure that the concerns of manufacturers are addressed and policy implementation remains industry-responsive.

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