Stakeholders in Uganda’s textile sector convened yesterday for a strategic engagement aimed at addressing tax-related challenges and strengthening standards alignment across the industry. The meeting brought together manufacturers, regulators, and sector representatives to discuss practical solutions to issues affecting the competitiveness and growth of the textile industry.

Representing the tax authority, Assadu Kisitu, Commissioner Customs at the Uganda Revenue Authority, commended the Uganda Manufacturers Association for organizing the engagement. He reaffirmed the Authority’s commitment to continued collaboration with industry players, particularly in advancing export promotion and supporting import substitution.

Hajji Kisitu highlighted that textiles remain one of the most highly smuggled commodities in the region, a challenge that undermines legitimate businesses and government revenue. He emphasized the importance of strengthening system compliance across the sector to streamline tax administration, particularly in the management of Value Added Tax (VAT).

During the discussions, members raised several key concerns affecting textile manufacturers and traders. These included the requirements surrounding Tax Identification Numbers (TINs), pricing disparities between formal manufacturers and traders in Kikuubo, high tax burdens, and delays in payments that affect business operations.

Stakeholders also discussed broader regulatory and policy issues, including the definition of who qualifies as a manufacturer within the sector, unequal tax exemptions that create an uneven playing field, and the implementation of the Pre-Export Verification of Conformity (PVOC) framework by the Uganda National Bureau of Standards.

Participants proposed a number of practical steps to address the concerns raised. These include the preparation of technical submissions to relevant authorities, conducting sector-specific analysis to inform policy dialogue, and ensuring adherence to applicable national standards to strengthen the credibility and competitiveness of locally produced textiles.

The meeting concluded with a call for continued engagement among stakeholders to develop structured sector recommendations. Industry players were encouraged to actively participate in follow-up discussions that will shape policy proposals aimed at improving the operating environment for Uganda’s textile industry.

Through such engagements, the Uganda Manufacturers Association continues to facilitate constructive dialogue between industry and regulators, supporting the growth and sustainability of Uganda’s manufacturing sector.