URA shuts down Good African Coffee over Shs1b tax arrears

A shocked customer at finding the premises closed. Photo by Stephen Otage

What you need to know:

When Daily Monitor visited the Lugogo Shop, which is usually busy with patrons who flock it for snacks and coffee, its main entrance was sealed off by URA.

Uganda Revenue Authority says they were forced to shut down Good African Coffee and Good African Café Restaurants after the proprietor started dodging the tax body over arrears.

Speaking on telephone on Monday, Stanley Kalyemera the head of debt collection at URA said they were forced to shut down the coffee exporting company and the Ccafé restaurants at Entebbe Airport, Lubowa on Entebbe road and the one in Shoprite Lugogo.

Both companies are owned by city businessman Andrew Rugasira, and since 2010, they have been severally referred to as “a case study” of an African business which has managed to penetrate the United States of American Market because of the direct coffee export route which the company created for itself from Uganda to the US market.

“We closed them because of tax arrears since 2010. We are demanding Good African Café a liability of Shs610 million and Good African Coffee a tax liability of Shs615million. This is what we have so far computed even the tax returns he has been filing, he does not pay,” he said

He added that despite several reminders by URA to Mr Rugasira to pay off the tax arrears in a phased manner, the businessman has been ‘too slippery’ to sign a memorandum of understanding and when he was eventually cornered, he issued bounced cheques which banks dishonored.

When Daily Monitor contacted Mr Rugasira, he confirmed the closure of his coffee business over taxes.

He was however quick to add: “We are working on sorting the matter although not sure closing solves anything.”
The Businessman did not say much but promised to get back to this writer after a meeting.

When Daily Monitor visited the Lugogo Shop, which is usually busy with patrons who flock it for snacks and coffee, its main entrance was sealed off by URA.