Traders accuse government officials of taking over rice business from them

The group made the accusation while appearing before the Parliamentary Committee on Trade, Tourism and Industry, which is investigating the trade war at the Uganda-Tanzania border at Mutukula, adding that they have been unfairly treated.

On April 21, minister Ntabazi wrote to the commissioner of Customs at the URA, directing the authority to recall V.A.T exempt import permits for some traders, while allowing only the 15 companies that had dragged URA to court to allow importing taxfree.

Mr Livingstone Ssenyonga, the chairperson and the director of Kampala Rice Traders Association, says that as a result of the above action, traders are suffering losses arising unfair competition.

“In the circumstances, it is unfair and inequitable for the office of the State minister for Trade, Industry & Cooperatives, to now turn around and direct URA to recall the issued (and still operational) VAT exemption licences after the traders have already expended money towards the rice importation consignments based on the already issued VAT exemptions without affording the affected rice traders a chance to be heard,” he said.

He added, "I believe that the URA directive halting the clearance of V.A.T exempt rice imports other than the 15 importers operating under the Court Order was erroneously issued since it appears to favor only the said 15 importers who sued URA,” Mr Ssenyonga said.

The traders added that only five of the 15 tax-exempot companies are active in rice importation.