By Deputy Speaker of Parliament, Hon. Thomas Tayebwa, has raised alarm over the continued exploitation of small-scale rice traders at the Mutukula border in Kyotera District.
Addressing Parliament on Thursday 17th April, Tayebwa called attention to a petition he received two years ago from traders detailing how certain individuals, allegedly with significant influence in government and business, have been registering companies under the guise of rice trade. These entities, according to the petition, obtain tax exemptions and subsequently collect taxes from genuine small-scale traders on behalf of the government.
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“There is too much unfairness in this country. Sometimes I ask myself, where do we want these people to go?” Tayebwa expressed, showing deep concern for the plight of the traders.
He further explained that when some traders attempt to operate independently, they face significant challenges, including a mandatory deduction of 6% from their earnings, leaving them with little choice but to engage with these intermediary companies.
The Deputy Speaker noted that this issue had previously been referred to the Parliamentary Trade Committee and was reportedly resolved. However, the problem has resurfaced, and traders continue to suffer under the same conditions.
“This situation is depressing. These are poor Ugandans trying to make a living. They should not be taken advantage of. They are going through a lot,” he added.
The Rice Agribusiness Development Foundation (RADFO), a company reportedly given autonomous powers to import rice via Mutukula, has been accused of frustrating trade. Traders allege that RADFO collects fees of Shs 180,000 per tonne of rice, exclusive of tax, and that they are compelled to pay Shs 220,000 per tonne to tax-exempt companies to have their consignments cross the border
Tayebwa also revealed that these powerful entities are often shielded by legal protections, making it difficult to hold them accountable. “You can’t even touch them. Each time you try to stop them, they run to court and get court injunctions. Even URA defends them,” he said
In response to these challenges, Tayebwa has urged the Ministry of Trade, Industry, and Cooperatives to issue letters to rice traders to facilitate the importation of rice through the Mutukula border without undue hindrances. He emphasized the need for equitable treatment of all traders and called for immediate action to address the systemic issues affecting the rice trade sector.
Deputy Speaker of Parliament, Hon. Thomas Tayebwa, has raised alarm over the continued exploitation of small-scale rice traders at the Mutukula border in Kyotera District. Addressing Parliament on Thursday 17th April, Tayebwa called attention to a petition he received two years ago from traders detailing how certain individuals, allegedly with significant influence in government and business, have been registering companies under the guise of rice trade. These entities, according to the petition, obtain tax exemptions and subsequently collect taxes from genuine small-scale traders on behalf of the government.
“There is too much unfairness in this country. Sometimes I ask myself, where do we want these people to go?” Tayebwa expressed, showing deep concern for the plight of the traders.
He further explained that when some traders attempt to operate independently, they face significant challenges, including a mandatory deduction of 6% from their earnings, leaving them with little choice but to engage with these intermediary companies.
The Deputy Speaker noted that this issue had previously been referred to the Parliamentary Trade Committee and was reportedly resolved. However, the problem has resurfaced, and traders continue to suffer under the same conditions.
“This situation is depressing. These are poor Ugandans trying to make a living. They should not be taken advantage of. They are going through a lot,” he added.
The Rice Agribusiness Development Foundation (RADFO), a company reportedly given autonomous powers to import rice via Mutukula, has been accused of frustrating trade. Traders allege that RADFO collects fees of Shs 180,000 per tonne of rice, exclusive of tax, and that they are compelled to pay Shs 220,000 per tonne to tax-exempt companies to have their consignments cross the border
Tayebwa also revealed that these powerful entities are often shielded by legal protections, making it difficult to hold them accountable. “You can’t even touch them. Each time you try to stop them, they run to court and get court injunctions. Even URA defends them,” he lamented
In response to these challenges, Tayebwa has urged the Ministry of Trade, Industry, and Cooperatives to issue letters to rice traders to facilitate the importation of rice through the Mutukula border without undue hindrances. He emphasized the need for equitable treatment of all traders and called for immediate action to address the systemic issues affecting the rice trade sector
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