The Speaker of Parliament, the Rt Honorable Rebecca Alitwala Kadaga has described the new textile tax regime as shocking. The Speaker was Tuesday meeting traders under their umbrella the United Textile Group and Manufaturers’ Association at Nakivubo in Kampala.
“I have met with the United Textile Group and Manufacturers’ Association at Nakivubo, in downtown Kampala. The textile traders say the new tax regime is prohibitive,” she said.
At the meeting, the traders told Kadaaga that a container that originally paid Shs100m in taxes now has to pay Shs800m. And this, they said risks to drive them out of business.
“This is a serious matter that I will bring up for discussion in Parliament so that we find a solution. It is wrong to burden people with such taxes when they are coming from severe lockdown.” the Speaker added.
The Speaker said she was shocked to learn that URA deviated from charging traders on per metre basis and resorted to kilograms.
“I’m shocked that you are now being charged in Kilos instead of metres. Who authorised this? Where is it in the law? Because we did not pass it in Parliament,” the fumed.
Kampala Central MP Muhammad Nsereko said traders want the new taxing system to be halted immediately until something tangible is reached upon between URA and the association. “These people want just one thing from us [Parliament] to stop this tax immediately.”
In her concluding remarks, the Speaker said she present the matter to house on Wednesday for debate.