Business in Kampala’s Central Business District came to a standstill as city traders closed their shops in protest against rising taxes on textiles and garments, Daily Star has learned.
The move follows recent changes to import duties that took effect on July 1, sparking outrage among traders.
Under the new tax regime, the import duty on fabrics has been reduced to $2 per kilogram or 35% of the value whichever is higher, down from the previous $3 per kilogram. Similarly, the duty on imported garments has been lowered to $2.5 per kilogram or 35%, down from $3.5 per kilogram.
Despite appearing to be reductions, traders argue that the shift to weight-based taxation continues to burden them financially.
“We’re going through tough times, yet many refuse to acknowledge it. I hold the trade leaders accountable; instead of uniting traders, they’re working to divide and break them apart,” said Hajji Issa Sekitto, Acting Chairperson of Kampala City Traders Association (KACITA).
Sekitto said the shop closures were directly triggered by the new tax structure on textiles and garments, which continues to hurt their businesses. He added that although the matter has been raised with Parliament, Cabinet, and even the President, no meaningful action has been taken.
In anticipation of the planned strike, security was heightened across downtown Kampala this morning, with law enforcement deployed to maintain order.
