Private Sector Foundation Uganda response to traders petition on the new taxation of textiles and garments.

  • Private Sector Foundation Uganda

Kampala, Tuesday, 31st August 2021 - Private Sector Foundation Uganda (PSFU) commends Government’s efforts in addressing the concerns of traders revolving around the taxation on textiles and garments. Under the new policy, the tax rates of textiles were increased to 35 per cent as import duty from 25 per cent, and to $3.5 per kilo on the imported textiles.  

PSFU as the apex body of the private sector representing its members who include KACITA, Uganda Tailors Association, among others has held several engagements in a bid to resolve the concerns around the new tax policy. 

The Government of Uganda has positively responded, engaged with our members, and agreed to drop the taxation using the 3.5 dollars per kg and 3 dollars per kgs on garments and fabrics respectively on 90% of all imported textiles and garments. This is good progress, and we commend Government for their efforts in engaging with the private sector continuously to resolve the concerns of traders. Government has also released a list of items which comprises the 10% on which the new tax policy will be administered. The list is being reviewed by PSFU accordingly. 

“We are committed to support the traders in finding a common ground on the concerns raised. Therefore, we appeal to the traders to halt the planned peaceful demonstration to allow continued engagements to happen amicably.” Said Francis Kisirinya, Ag. Executive Director, PSFU. 

PSFU is committed to engaging with Government to ensure that an amicable & sustainable solution is achieved. Government has requested for a week to conclude and resolve this matter. 

Therefore, PSFU calls upon affected traders to suspend the planned demonstration to give a chance for negotiations to continue as the means to reach an amicable solution.