Traders and importers operating in Kampala city center have raised concerns over inconsistent import valuations by the Uganda Revenue Authority (URA), linking the practice to unpredictable tax bills and increased costs of doing business.
Business groups including the Kampala City Traders Association (KACITA), the Federation for Uganda Traders Associations (FUTA), and wholesalers operating around Ham Arcade and Mukwano Arcade say similar goods are often taxed differently from one shipment to another.
According to these business groups, the lack of a clear and consistent valuation system has created uncertainty and unfairness in customs taxation.
KACITA chairperson, Bissa Ssekito, said traders have for years complained about unclear and unpredictable tax assessments on imported goods.
“Importers are often surprised by tax bills that differ from what they had planned for, even when importing the same type of products,” Ssekito stated.
Under Ugandan law and international customs rules, the main method for valuing imports is the transaction value, which is the actual price paid or payable for the goods, including cost, insurance and freight.
However, traders say customs officers frequently use other valuation methods or internal price guides without clear explanations.
In some cases, similar goods declared at the same price on the same day have attracted different tax amounts.
Matovu Johnson, a car dealer in Nakawa, said disputes over valuation are long-standing, especially in the motor vehicle trade.
He referred to a previous court case in which the Court of Appeal ruled that URA’s practice of rejecting invoice values for used vehicles and relying on its own estimates was unlawful. Despite the ruling, lawyers for importers say the practice continues in some cases.
Traders dealing in electronics, clothes and hardware report similar challenges, including higher duties, delayed clearance and added costs. They say unpredictable taxes strain cash flow and push up prices for consumers.
URA says alternative valuation methods are used to protect revenue when documents are incomplete or suspected to be false.
However, traders are calling for clear guidelines and consistent application of the law to restore confidence in Uganda’s import system.
