Kampala Traders Push for Urgent Talks Over New Tax Enforcement Measures
Kampala, Uganda
By The Urban Gazette Business Desk
Kampala’s major trading centers — including Kikuubo, St. Balikuddembe (Owino), and Kisenyi — remained tense Tuesday 11.November 2025 as traders continued to express frustration over newly intensified tax compliance inspections by revenue authorities. While shops have not fully shut down this week, many traders say they are prepared to resume a city-wide strike if the government does not agree to a structured dialogue session addressing tax rates, digital receipts, and import valuation disputes.
Traders report that enforcement teams have increased both physical inspections and digital invoice verification checks, a move revenue officials say is necessary to close tax leakages in wholesale and informal retail sectors. Shop owners argue that the process has been abrupt, burdensome, and in some cases conducted with intimidation or unclear communication.
Business associations are requesting:
Clear and predictable tax schedules
Transitional grace periods for small importers
A single-window invoice verification system
A formal negotiation forum with officials
Government officials maintain that Uganda must increase domestic revenue to fund public services — but have signaled willingness to meet traders’ representatives if unrest continues.
Why This Matters
Small traders drive Kampala’s economy. Disruptions ripple into transport, market vendors, and households.
Tax digitization is necessary, but when poorly communicated it can trigger resistance, evasive behavior, or shutdowns.
Persistent tension risks stalling city business flow ahead of holiday shopping season, when small businesses depend on high sales.
What to Watch
Whether authorities announce a roundtable negotiation date.
If traders call another coordinated shutdown, especially in Kikuubo.
Market pricing trends — if traders transfer higher tax costs to consumers.
Response from political actors — especially mayoral and parliamentary hopefuls seeking to align with or capitalize on trader sentiment.
