Kasese traders using porous borders to evade taxes

Ugandan traders have resorted to using the porous borders to access markets in the Democratic Republic of Congo (DRC) to evade taxes imposed by Uganda Revenue Authority (URA).

The traders accuse URA of levying a Shs10,000 charge  at Mpondwe border post to purchase a travel ticket to DRC despite a presidential directive.

President Museveni, while commissioning Mpondwe One-stop Border Post last December, banned the fee state minister for Trade, Ms Harriet Ntabazi,  said  traders were being charged for travel to DR Congo.

Ms Margaret Biira Kipako, a  trader, says the levy has forced some of their colleagues to use alternative routes such as  Kabafu, Mirami, Kisolholho, Kanyatsi and River Lhubiriha. 

Ms Biira said: “To be able to survive during these hard times, we find ourselves using the porous borders in an attempt to avoid the taxes .’’ 

Ms Mary Birungi, who deals in fabrics, says her profit margins have since been affected by the levies.

For instance, Shs10,000 is charged as tax during clearance at the border on a single fabric that costs Shs16,000 from DR Congo.

“With that, you can hardly make any profit,” she said.

In January, traders from Mpondwe petitioned the Speaker of Parliament, Ms Anita Among, asking her to ensure the implementation of the  presidential directive.

The Deputy Resident District Commissioner for Bukonzo County,  Lt Maate Magwara,  said President Museveni negotiated and agreed with his counterpart in DR Congo to waive off the Shs10,000 travel charge.

He said the President wanted traders who live within the radius of 10 kilometres in both countries not to pay the travel charge as long as they have  valid identification cards.

According to Lt Magwara, the radius of 10 kilometres covers areas of Kithoma -Kanyatsi, Kinyamaseke and Mpondwe. 

Lhubiriha Town Council, Kitholhu, Karambi, Nyakiyumbu, Ihandiro and Isango sub-counties .

“The President announced the waiving of that amount when everyone was around. Tell the people that the charge has been waived and therefore no one should risk passing by waters because that restriction is no more,” he said.

He warned traders to stop using porous border points saying one person from Isango Sub-County  was arrested recently in DR Congo over charges of illegal poaching into Virunga National park in DRC.

“Traders need to cooperate with the immigration officers so that they can freely continue carrying out their business other than risking using porous borders,” he said.

The Customs Law Enforcement Officer at Mpondwe, Mr Alfred Ocen, said taxes can only be adjusted by the ministry of Finance.