By Augustine Kabooha.
Fort-portal Tourism City traders dealing in textile products have expressed worry over government decision to increase tax on their products imported from outside the country.
In December 2020, the government introduced a new tax policy on imported textile clothes and garments. Under this policy the tax rates of textiles were increased to 35% as import duty from 25% and to $5 per kilo on the imported textile materials.
Last week traders under their umbrella body Kampala City Traders Association KACITA threatened to launch a peaceful demonstration after giving a two weeks ultimatum to the government to have repealed their decision. They were considering several actions to show displeasure over the textile tax, and also the failure by landlords to waive rent arrears for the period when the country was under a total lockdown.
In Fort-portal city, traders say that the taxes will cause challenges of low customer turnout. Ms Justine Kyoge of Kitenge African Designs asks government to reconsider the decision.
The government says that the move would encourage and promote the local products. She says that the new policy will place heavy burden on them and says that the traders are hurting and many of them are likely to lose their businesses.
