The Uganda Revenue Authority (URA) has condemned smuggling as a serious economic crime, labelling it “economic terrorism” that threatens Uganda’s market stability.
During a panel discussion held on Tuesday in Pakwach District, URA officials, alongside other key stakeholders, called for urgent action to strengthen anti-smuggling measures and protect legitimate businesses.
Frank Abaho, Supervisor of Enforcement and Border Control at URA, warned of the devastating impact of smuggling on the economy.
“Smuggling kills businesses,” he said, emphasizing how practices like misclassification, undervaluation, and document falsification undermine fair competition.
Abaho urged the public to utilize the free services offered by border control offices to ensure they remain compliant with the law.
“Our offices are open for assistance,” he added.
The financial consequences of smuggling were further elaborated by Mawerere Abbey, Customs Regional Manager for Northern Uganda.
Abbey stressed that tax evasion through smuggling places an undue burden on law-abiding taxpayers.
“If all of us paid our taxes, we would pay less,” he explained, pointing out the strain on the national budget.
He noted that URA is expected to collect Shs32 trillion, but Uganda’s overall national budget stands at Shs72 trillion.
This significant gap has forced the government to rely on borrowing to meet its fiscal needs.
The panel discussion also addressed the internal challenges within the URA, particularly corruption. Mawerere revealed that the agency has been tackling corruption head-on by reinforcing internal controls and weeding out dishonest employees.
“We have dismissed around 90 staff members in the past two years, including 19 just last month,” he said, emphasizing the agency’s dedication to transparency.
He encouraged the public to report corrupt officials and highlighted URA’s commitment to rooting out corruption through a dedicated division.
Claire Sanyu, Supervisor of Stakeholder Engagement for the Northern Region, highlighted the crucial role of community involvement in the fight against smuggling.
She said that building trust with local stakeholders and raising awareness through educational initiatives are key to effective enforcement.
“Community engagement is essential for successful enforcement,” Sanyu stated, emphasizing that collaboration with the public would strengthen efforts against smuggling.
The economic cost of smuggling in Uganda is staggering. According to the Uganda Bureau of Statistics, smuggling costs the economy an estimated Shs1 trillion annually, exacerbating unemployment and destabilizing market prices.
These illicit activities inflate prices and increase costs for consumers, further deepening the country’s economic challenges.
The URA panel discussion served as a vital platform for raising awareness about the dangers of smuggling and the importance of tax compliance.
URA officials urged stakeholders to actively engage with the agency to create a unified front against smuggling.
They stressed the need for stricter enforcement measures and stronger community collaboration to safeguard Uganda’s economic integrity.
Smuggling not only undermines the integrity of legitimate businesses but also hampers Uganda’s broader economic development.
As stakeholders come together to combat this illegal practice, the emphasis on community engagement and strict enforcement is critical in creating a fair and competitive marketplace for all Ugandans.
