Maintain restrictions on foreign traders – KCCAPublish Date: Mar 14, 2013 newvision By Moses Walubiri Kampala Capital City Authority (KCCA) Councillors are opposed to government plans to amendment the Trade Licensing Act, 1969, to allow non-citizens to transact business in any part of the country, saying it will strangulate local traders and entrepreneurs. The Councillors want the clause in the Principal Act that prohibits non-citizens from trading outside a city, municipality or town and in specified goods and services maintained, the impending East African protocol that provides for free movement of goods and services notwithstanding. The clause is among the mooted string of amendments in the Trade (Licensing) (Amendment) Bill, 2012 that government is rooting for as it seeks to craft a law that is in sync with its liberalization policy and its obligation under the East African Community protocol on lifting trade barriers. “If we adopt an open door policy on trade, foreigners are going to choke local traders with little capital and expertise. There should be places where foreign traders should not be allowed as it is in the current law,” Ibrahim Kagolola said in an interface with the Tourism, Trade and Industry committee yesterday. Nakawa Division Deputy Mayor, Betty Tushabe, and councillors, Angela Balaba, Juliet Kimono and David Nsereko said the restriction should be maintained, as it’s the “only protection local traders have against foreign petty traders who pose as investors. The issue of local traders clamouring for protection from foreign traders is as emotive an issue as its polarizing, with Kampala City Traders Association (an association of city traders) routinely voicing its disquiet about government’s perceived failure to stop an influx of alien petty traders into the country. In a related development, councillors opposed to the continued taxation of private schools and those who want the tax rates hiked clashed. Nsereko and Tushabe want taxes on private schools dropped because “they supplement government efforts to offer education to citizens” while Nalongo Ndagire and Patrick Makanga feel the current tax rates need to be increased in light of “the huge profits” proprietors of private schools earn. The government is also using this Bill to cure the current situation where persons licensed by their regulatory bodies are exempted from obtaining trade licenses. This bill also clearly differentiates between trade licenses and licenses issued by regulatory authorities such as Bank of Uganda, Law Council, Medical and Dental Practitioners and Engineers and Architects Registration Boards. A synopsis of the proposed amendments indicate that while trade licenses are required as a prerequisite for transacting any business, licenses issued by regulatory authorities are a guarantee that the persons under those bodies are qualified and competent. Ends.
Posted on: Fri, 21 Mar 2014 18:32:11 +0000
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