Africa-Press – Uganda. Traders under their umbrella, Kampala City Traders Association (Kacita), have threatened to close their shops in protest over rental arrears, which they accumulated during lockdown.
In a press statement released at the weekend, traders accuse government of ignoring their plight yet landlords continue to harass them.
“Kacita wishes to inform all traders and the general public that we shall have a peaceful demonstration starting from September 1 due to government failure to assist traders regardless of their outcry for the increasing taxes even during the pandemic and the rental charges during the time of the lockdown despite several petitions and engagements that we have held with them,” the statement reads.
It adds:“Banks are taking people’s property, landlords are evicting us, our goods are expiring and taxes are abnormal. This is so unfair.”
President Museveni on June 18 locked down the country for 42 days as a measure to contain the spread of the second wave of Covid-19 before lifting the restrictions on July 30.
During the 42-day period, many business activities, in the city centre were closed.
Traders argue that it is unfair for government to look on as landlords harass them to pay rental arrears yet they were not working during lockdown.
Mr Thadius Musoke, Kacita’s acting chairperson, accused government of increasing taxes at a time when traders are struggling to salvage their businesses.
He said the pandemic had compelled most traders to abandon their shops because of the cumulative rental arrears.
“We have tried for the last two years to engage Uganda Revenue Authority (URA) but they only tell us that they are also implementing directives from the Ministry of Finance. Therefore, we are stuck but government seems not to care. That is why we have planned a peaceful demo to express our dissatisfaction,” Mr Musoke said.
He said government should be focusing on building the capacity of local businesses instead of ‘favouring’ foreigners with tax holidays.
Though government asked landlords to reschedule payment for arrears after lifting the first lockdown, most of them defied the directive, which left most traders cash-strapped.
Besides, traders pay trading licence of between Shs260,000 and Shs300,000 depending on the type of business to Kampala Capital City Authority (KCCA), Value Added Tax (VAT) to URA and certification fees to Uganda National Bureau of Standards.
Other operational costs include power, water and garbage fees. Traders argue that it is hard to meet all these costs during the pandemic since they have not been working.
The situation is worsened by the high bank interest rates, which leave majority of them stressed.
When the first lockdown was lifted last year, traders planned to reorganise themselves but their hopes were shattered when the President imposed a second lockdown in June this year.
Mr David Luyimbazi, KCCA’s deputy executive director, recently told Daily Monitor that it was impossible for KCCA to waive off trade licence imposed on city traders because it is paid annually.
“Trade licences are paid annually and it is quite hard to waive it unless it is a monthly tax. However, we will continue engaging government as far as the stimulus package for such categories of people is concerned,” he said.
Govt efforts
The State Minister for Kampala, Mr Kyofatogabye Kabuye, acknowledged the traders’ concerns, saying they were being addressed. However, he declined to disclose details. He said representatives of traders met the city’s Covid-19 taskforce to address the issues.
