Second-hand clothing dealers, Nakasero market vendors, up against high taxes

The development comes on the backdrop of the latest tax increase of $1.17 per kilogramme launched in November from the $0.89 per kilogramme as of January 2018, an increment of about Shs40 million.

Addressing the media on Sunday, the association chairman, Andrew Rubeihayo, said that compared to the neighbouring countries, the tax is unfair.

”On November 5, 2022, we woke up to disheartening news about a tax increment in our business. URA has made it a habit to increase values (CET rates) of used clothes and shoes even when they are not backed up by policy amendments and or the East African Community Management Act,” Rubeihayo said.

Moreover, the increment came as a shock without fore warning or notice and their pleas to the tax body have been met with silence.

“We have written to URA and expressed our disappointment not forgetting the hard times that we are going through with increased cost of goods from origin, high freight charges, runaway inflation, a weak shilling over the years and yet URA uses a high forex rate for valuation,” Rubeihayo asserted.

The traders have therefore demanded to have the new rates suspended and have called for negotiations to further reduce the old rates to match sister countries.

“We are ready to close our shops and not clear any containers until we receive postive feedback from URA and our leaders,” Rubeihayo warned.

Nakasero market vendors give authorities ultimatum

Meanwhile, vendors in Nakasero market in Kampala City have protested the daily dues the market has subjected them to saying they are excessive.

It should be remembered that President Museveni banned daily dues on informal businesses saying that business groups such as food vendors, gonja (roasted plantain) sellers, and maize sellers, as well as taxi operators, should only pay annual licences.

“The President banned these daily taxes they are imposing on us. Everything here is taxed. How are we going to survive given the hard economic times?” asked Muhammad Mbaziira, a market vendor in Nakasero.

They accuse the market leadership of betrayal, and called for their resignation for the reintoduction of the dues.

The accused are: the chairperson Richard Mukiibi, and the director, Faridah Kimuli.

“In 2021, these leaders organised an operation to re-organise the market and asked us to temporarily find where to go. We moved out and after we returned, most of our stalls had been occupied by these leaders, leaving us with no space,” said Zaituni Nakiganda, a market vendor selling oranges in Nakasero Market.

"When you bring a lorry of carrots in Nakasero, they charge you between Shs150,000 and Shs200,000. This is really huge compared to what we earn. We are also charged an entrance fee, which ranges between Shs1,000 and Shs2,000 and market space, Shs2000," Kirya Muhammed, another vendor said.

City authorities respond

The angered vendors have called upon Prime Minister Robinah Nabbanja to intervene like she did at Wandegeya Market, and given authorities six days to respond.

The Kampala Capital City Authority (KCCA) spokesperson, Simon Peter Kasyate, said he was not aware of the taxes.

“I am not aware of this. I got it from you, but let me consult my colleagues who are running the markets, I will get back to you,” he said.

However, the Minister for Kampala, Minsa Kabanda, urged the vendors to observe order until solutions are availed cautioning them against violence.