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Why the government is protecting the growing textile industry

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The Uganda Revenue Authority (URA) has recovered more than 150 rolls of textiles from a notorious smuggler in Busia. The fabric was recovered in an undercover operation in the early hours of Monday morning.

According to Moses Amwine, one of the agents involved in the operation, they received information that the usual smuggler was planning to bring textiles from neighboring Kenya.

“We gathered our equipment and stood waiting while the Harrier was being loadedAnd, in fact, at five in the morning we managed to corner him at the Mawero Eastern Division headquarters, near the Sofia border crossing, when he was planning to leave with his “cargo”, Amwine narrated.

Upon seeing the agents, the smuggler fled into the nearby bushes, leaving behind a Toyota Harrier UBQ 425. This was escorted to the busia season where further verification revealed 158 rolls of polyester plain textile material and 51 pieces of polycotton plain dyed poplin textile material.

The team also recovered several license plates. that they I believe the smuggler had been using it to evade surveillance while conducting his trade.

This interception comes at once when traders have been up in arms over the government’s policy of taxing selected textiles in kilograms, i.e. $3.5 per kg or 35% of cost, insurance and freight (CIF), whichever is greater.

In a recent appearance on a local television station, URA Commissioner General John Musinguzi explained that this policy It was presented to protect Uganda’s growing textile industry.

“It is a deliberate step by the government to promote this young sector with a lot of potential because if we add value to our cotton, we can easily become the leading producers of good cotton products instead of exporting the raw material,” he explained. .

Musinguzi, however, acknowledged that since the implementation of the policy began, textile smuggling has been on the rise. He noted that URA is in talks with various stakeholders to address the challenges involved.

Under sections 199(iii) and 200 of the East African Community Customs Management Act (EACCMA), the owner of the Toyota Harrier seized in this operation is subject to a fine not exceeding US$5,000.