URA phases out container leaders in major crackdown on tax evasion.
Kampala, Uganda: Uganda Revenue Authority (URA) has officially phased out the role of container leaders—intermediaries previously linked to widespread tax evasion—in a sweeping reform targeting transparency, accountability, and efficiency in customs clearance operations.
Commissioner General John R. Musinguzi Rujoki made the announcement during a critical stakeholder meeting held on June 17, 2025, at Hotel Africana, Kampala. The engagement brought together officials from URA, leaders of the Kampala City Traders Association (KACITA), and freight forwarding agents.
“Today marks the end of the road for container leaders,” Mr. Rujoki declared, stressing how these intermediaries facilitated rampant under-declaration of imports, costing Uganda billions in revenue and distorting fair competition for compliant businesses. He warned that the URA would not hesitate to punish both customs officers and clearing agents caught abetting such malpractices.
Mr. Rujoki noted that despite surpassing the 2023/2024 revenue target by collecting Shs 25.2 trillion against the Shs 24 trillion goal, Uganda still loses over Shs 5 trillion annually to smuggling, tax evasion, and illicit financial flows. “Eliminating container leaders is one step in closing this gap,” he said.
The tax body is now encouraging importers to embrace self-clearance systems to strengthen individual accountability and reduce opportunities for manipulation of cargo manifests.
Hajj Asadu Kigozi Kisitu, Acting Commissioner for Customs, admitted that unethical practices within customs and among traders had caused unnecessary delays. He clarified fresh policies regarding apparel imports, noting that T-shirts and related goods will now attract tax of either USD 3.5 per kilogram or 35%, whichever yields more revenue—a move aimed at protecting Uganda’s manufacturing sector.
KACITA welcomed the reforms but pressed for more open communication. Chairman Dr. Thaddeus Musoke Nagenda said traders are grappling with prolonged customs delays, which threaten business survival. “Our businesses are on the brink,” he warned, urging URA to streamline processes and avoid compounding the crisis.
This policy shift follows a damning internal audit that exposed significant revenue losses through falsified declarations in groupage cargo. The audit findings prompted a tougher compliance regime and the scrapping of outdated policies governing consolidated shipments.
Mr. Rujoki reaffirmed URA’s commitment to working collaboratively with the private sector. “We exist to facilitate trade,” he said. “If our businesses fail, so too will revenue collection. We must work together to ensure mutual success.”
This reform marks a critical step towards restoring trust between URA and Uganda’s importers while balancing the drive for revenue growth with support for legitimate trade.
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daily express