Importers of clothes received some relief when the Minister of Finance, Planning, and Economic Development, Matia Kasaija, declared a tax exemption for imported textiles and garments.
The minister included an import tariff of 3.5 dollars per kilogramme of fabric or 35% of the item’s worth in the budget for fiscal year 2021/2022, which was read last month.
The shopkeepers bemoaned the high cost of doing business as a result of the levy, which meant that a garment weighing one kilogramme would be 12,000 shillings more expensive.
Uganda’s Minister Matia Kasaija directed that only the import duty rate of 35 per cent be charged on imported textiles and garments. The measure is an attempt by the government to balance between affordable clothing and protection of and support to the local industry. The minister appealed to traders whose goods are in bonded warehouses or in transit to move and clear them as they will be cleared under the directive.