The Uganda Revenue Authority (URA) is investigating a growing number of fraudulent claims for customs exemptions, exposing a network of individuals and companies accused of forging subcontractor agreements to present government-funded projects as donor-financed.
According to URA’s Tax Investigations Department, these schemes involve the submission of manipulated documents falsely identifying importers as participants in donor-backed initiatives, which under the law qualify for duty-free importation of goods such as vehicles, construction materials, and equipment.
Authorities have noted that many of the claimants were neither officially subcontracted for the said projects nor engaged in donor-related undertakings. Instead, the projects cited were fully funded by the Government of Uganda, particularly in infrastructure development.
“The level of misrepresentation we are witnessing is alarming,” a senior URA official said. “These schemes are designed to cheat the system and deny the country vital revenue.”
The schemes typically involve fabricated subcontractor letters and altered project documents submitted in exemption applications. The forged submissions misled customs officers into granting duty waivers intended for bona fide development partners.
In response, the URA has stepped up enforcement, including seizure of goods, cancellation of wrongly issued exemptions, and initiation of legal proceedings. Some of the implicated importers are currently undergoing administrative review.
The Authority has also invoked Section 203 of the East African Community Customs Management Act, 2004, which criminalizes false declarations and forgery in customs documentation. Offenders risk prosecution, steep financial penalties, and forfeiture of goods.
To safeguard the integrity of the exemption regime, the Customs Department is working in tandem with line ministries and international development partners to enhance the vetting of exemption claims. Officials have pledged that every application will now undergo rigorous scrutiny before approval.
Meanwhile, URA’s Post Clearance Audit and Tax Education units are engaging taxpayers, especially contractors, to stress that exemptions are discretionary and reserved for verified development work.
“Exemptions are not entitlements; they are privileges extended in good faith. Those found misusing the system will face the full force of the law,” a PCA officer noted.
As part of a broader compliance strategy, URA is urging the public to report suspected fraud through its anonymous whistleblowing channels, reassuring citizens of confidentiality protections.
The Authority reiterated its commitment to upholding fairness in tax administration and protecting public funds by targeting bad actors who undermine national revenue efforts.
