URA cannot collect taxes without us, freight and forwarding agents say
UFFA Board _ (L-R) Louise Kamuhangire, Abert Mwebembezi, Charles Mwebembezi (CM), Paul Higiro (V.CM), Phoebe Muathe, John Kutyabami and AmbroseTuryahabwe. Photo | Ismail Musa Ladu
What you need to know:
- Industry players expressed concerns about delays in clearance procedures, which can significantly impact cargo movement and revenue collection
The freight and forwarding fraternity concluded their 23rd annual general meeting (AGM) with a call for efficiency at the customs points.
The industry fraternity also reminded the taxman about their importance in facilitating revenue collections.
Members were particularly concerned with how some customs officials drag their feet when dealing with industry professionals trying to clear revenue obligations on behalf of importers and exporters – the taxpayer.
During the AGM, it emerged that time and again, some URA officials at the customs points have a tendency to put things off instead of giving them due attention, considering that even the slightest of delays in clearance not only affects flawless movement of cargo but also slows revenue collection.
Importantly, the freight forwarders industry players are involved in most, if not all, customs revenue collections. According to Uganda Revenue Authority (URA), freight and forwarding industry players contribute about 35 percent to the revenue collection targets.
Further, Uganda Freight Forwarders Association (UFFA), an umbrella association for logistics companies in Uganda handles 90 percent of the country’s freight logistics-import, export and transit.
“Imagine, with only just over 200 members, UFFA facilitates almost 80 percent in tax collection for URA in customs business. This is because of our professionalism, which is key in improving our capacity.
“We work hand in hand with URA. Without us, URA may not be able to collect the taxes it does from customs. We are the ones who interact with the importers and exporters. So we facilitate the government in collecting revenue - up to around 80 percent in facilitation. We are the professionals that URA depends on to collect taxes,” UFFA Chairman, Mr Charles Mwebembezi, said in an interview last week.
Taxman’s say
Responding to the industry players' concerns, the URA’s Assistant Commissioner Risk Management, Customs Department, Mr James Malinzi, in an interview after the AGM said whereas there might be some officials with tendencies to drag their feet, it takes two to tango.
He said: “We expect better from our officials.
“However challenges relating to delays in clearing goods can be caused by either our officials or by the freight forwarders themselves. So it is an issue that both sides can be at fault.
“I am not justifying the delays, but it is possible that our staff can be overwhelmed because we are thin on the ground. We have been recruiting more workers and we believe we will improve our service delivery speed.
“We also believe the system automation we have adopted will assist us provide faster and more efficient services while limiting physical interaction with our staff.
Mr Malinzi who was representing the commissioner customs at the AGM urged the industry player to declare the consignment they are handling at Mombasa port to quicken clearance ahead of time. This he said is a win-win for the taxpayer who will be spared the demurrage costs and other related expenses.
Professionalism
Meanwhile, the umbrella association of transport and freight logistics companies in Uganda during the AGM resolved to transform freight logistics into a highly competent and ethical Industry.
This commitment is a significant step toward the professionalization of the freight logistics sector through strategic initiatives focused on training, capacity building, self-regulation, and enhanced collaboration with key regulatory authorities and industry stakeholders.
The AGM, attended by UFFA members and representatives from the tax body – Uganda Revenue Authority (URA), emphasized the critical need to elevate industry standards and align Uganda's freight logistics sector with emerging global trends and best practices.
The resolutions made at the AGM reflect UFFA's commitment to strengthening the sector's capacity to meet the evolving demands of global trade, enhance efficiency, and improve overall service delivery.
Uganda Freight Forwarders Association recognises that developing human capital is essential for professionalising the freight logistics sector.
To this end, UFFA will administer comprehensive training programs aimed at equipping industry professionals with the necessary skills, knowledge, and competencies in freight forwarding, customs regulations, supply chain management, and digital logistics.
Additionally, UFFA acknowledges the transformative impact of technology on the freight logistics industry and is committed to embracing digital solutions to improve efficiency and service delivery.
“Under the East African Customs and Freight Forwarding Practicing Certificate (EACFFPC) over 2500 freight forwarders practitioners in Uganda have been trained. We work closely with URA in this,” said Mr Hussein Kiddedde, Member of UFFA Advisory Council. The EACFFPC is a regional program where the freight industry partners with the revenue authorities to ensure the industry is professionalised.
The AGM also highlighted several emerging trends reshaping the global logistics landscape, which UFFA is prepared to integrate into its strategic initiatives. The global disruptions caused by the COVID-19 pandemic and geopolitical tensions have increased the need for more resilient supply chains. UFFA will work with members to diversify supply routes and enhance contingency planning.
Changes in trade policies and regional economic blocs, including the African Continental Free Trade Area (AfCFTA), present new opportunities for Uganda's freight industry, an opportunity UFFA is looking to have its members leverage.
Utility
The new board
• Charles Mwebembezi – Chairman
• Paul Higiro – Vice Chairman (former Secretary General)
• Phoebe Muathe – Treasurer
• Ambrose Turyahabwe – Secretary General
• John Kutyabami – Board Member
• Abert Mwebembezi – Board Member
• Louise Kamuhangire – Board Member
