Traders Shut Shops in Kampala Over URA Taxes, Demand Musinguzi’s Resignation

Traders Shut Shops in Kampala Over URA Taxes, Demand Musinguzi’s Resignation

Business in parts of downtown Kampala came to a standstill on Tuesday as traders launched a sit-down strike, protesting against what they described as exorbitant taxes and delays in clearing goods under the Uganda Revenue Authority’s (URA) tax system.

The strike, organized by sections of the business community and backed by KACITA Uganda, saw several arcades along Nabugabo Street and Park View Building closed, with traders sitting outside their locked shops in protest. Police moved in and arrested a number of traders who were seen urging others to shut down and join the action.

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The traders accuse URA of imposing unfair taxes and fault its new system for delays in clearing containers in Nairobi. They further allege that Chinese investors are enjoying tax-free operations while Ugandan traders are being overburdened, a situation they say has left many businesses struggling.

“We are tired of abnormal taxes and the unfair treatment we face compared to foreign traders. The Commissioner General, John Musinguzi, must resign,” one trader told reporters outside his closed shop.

While the strike paralyzed much of downtown Kampala, business continued as usual in other cities. In Mbarara, the chairperson of the Mbarara City Traders Association (MBACITA), Simon Mwijuka Sezi, said he had not received official communication about the strike. “I only saw the announcement on social media. The arrangement was unclear, so our members did not close,” he said.

On Kikuubo Street, some shops remained open, though foot traffic was visibly lower than normal. Street vendors, however, took advantage of the shutdown to sell their goods more freely in the absence of competing arcades.

The police said they were monitoring the situation and urged traders to resolve their grievances through dialogue rather than illegal demonstrations.

KACITA has hinted at possible escalation of the protests if government fails to engage them, raising fears of a wider business shutdown in the coming days.

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