Africa-Press – Uganda. The Uganda Revenue Authority (URA) has urged rice importers to strictly adhere to tax laws and regulations if they wish to qualify for withholding tax (WHT) exemptions reserved for compliant taxpayers.
Speaking to rice importers at the Mutukula One Stop Border Post, Hajji Asadu Kigozi Kisitu, the Commissioner of Customs, stressed that exemptions are a privilege earned through compliance.
“Compliant taxpayers are the only ones considered for tax exemptions,” Kisitu said.
“Declare the imported rice from Tanzania, pay the resultant taxes promptly, and with time, you too can benefit from WHT exemptions.”
Some traders expressed concern over what they described as unequal treatment in the allocation of exemptions.
“URA gives some importers exemptions, ignoring most of us, which disrupts our businesses due to unfair competition,” said Francis Kimuli , the Chairperson of the Kampala Rice Traders Association.
Clarifying the matter, Kisitu explained that withholding tax is part of business income tax and is accounted for during the normal tax return filing period.
“WHT exemptions do not mean that taxes will not be paid. It’s just a relief from paying taxes at importation, but you still pay during the return filing period,” he noted.
Addressing concerns over delays in clearing rice consignments, the Commissioner attributed the problem to understaffing but assured traders that URA is addressing it through the deployment of additional staff.
Meanwhile, Geoffrey Kawere Ssozi, URA’s Dar es Salaam Customs Manager, reminded importers that compliance not only opens the door to exemptions but also ensures smoother business operations.
“Our team is energised to facilitate you on all products originating from Tanzania. Remain compliant because compliance is very key when it comes to trade within the East African Community,” Ssozi said.
The rice importers welcomed URA’s continued engagement, noting that open communication helps address challenges in the trade sector.
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