Nagenda now says the most contentious issue was about the goods that had already been ordered before the new tax policy came into place and were either in transit or in customs bonded warehouses. The traders have been told that they can clear such cargo under the previous tax measures.
Everest Kayondo, the Chairman of Kampala City Traders Association (KACITA) says that the current set up within the central business district does not allow a smooth flow of business, and asked the city authorities to “drop the politics, and restore sanity in the city.
The policy aims at increasing public investment and nurturing of industrial development Projects in strategic areas, including some traditional and non-tradition cash crops, as well as the extractives industry mainly mining and oil and gas related industries.
Keith Jefferis, the Senior Advisor to the Botswana Ministry of Finance and Economic Development, says operational costs in Uganda account for 60% of the expenses of banks compared 40% in other countries, and this contributes to the high lending rates in Uganda.
The East African Community Customs Management Regulations 2010 already had a list of products deemed ‘high risk’ that should not be in warehouses, including acids, ammunition for trade and business, arms for trade and business, chalk, explosives, fireworks, dried fish, perishable goods and matches other than safety matches.