The Uganda Revenue Authority (URA) has renewed efforts to combat cross-border smuggling and tax evasion in the eastern region in a bid to accelerate economic growth. Thousands of tonnes of cheap products from neighbouring Kenya are smuggled into the country daily through porous border points, especially along Lwakhakha, Busia, and Malaba. The eastern Uganda–Kenya border stretches over 800 kilometres, presenting a vast expanse that is difficult to monitor effectively.
Smugglers exploit this vastness, taking advantage of informal crossing points, remote areas, and unmanned routes to carry out their activities. Among the most smuggled goods are wheat flour, rice, tyres, cement, cooking oil, garments, and electronics, especially mobile phones and computers.
The Daily Monitor has learnt from URA sources that in the last quarter alone, officers intercepted more than 100 tonnes of wheat flour being smuggled into the country. Mr Moses Wanjala Owino, the URA manager for Enforcement and Border Control in the eastern region, told Daily Monitor that they are committed to ending smuggling across the border points. Last week, a URA enforcement team impounded a large consignment of smuggled wheat flour from Kenya weighing 10 tonnes.
“Smuggling is one of the factors standing in our way. It has a number of negative effects on the economy. It creates unfair competition between smugglers and genuine taxpayers, distorts the market, and affects the operations of local industries, which cannot produce at full capacity,” Mr Wanjala said. He added that the enforcement team has intensified efforts to curb smuggling through enhanced surveillance and intelligence-led operations. However, he added that some border communities have shown hostility towards URA enforcement teams, often disrupting operations aimed at ensuring that goods pass through gazetted routes. “Once we seize smuggled goods, we charge the offender under Sections 199 and 200 of the East African Customs Management Act.
The person is expected to pay full taxes on the goods plus a fine of 50 percent. We may also opt to forfeit the goods to the State and still prosecute the offenders,” he said. Mr Yasin Opio, a businessman at the Malaba border, said URA must intensify its efforts against smuggling or risk pushing genuine traders out of business. “The consequences of smuggling are far-reaching, with the potential to destabilise the country’s economy. This illicit trade also often serves as a conduit for other criminal activities,” he said. Mr Amos Mafabi, a businessman operating in Lwakhakha Town Council in Namisindwa District, said smugglers use various means of transport to ferry goods.
(monitor)