Traders in Kikuubo re-opened their shops yesterday. Photo by Ismail Kezaala.

KAMPALA
Last week’s four-day traders strike could have cost the government close to Shs40 billion in revenue although tax collectors say there is still time to recover the money.
It is also estimated that the traders have lost an estimated Shs3 billion in sales after the strike called to protest ‘high’ interest rates charged on loans by banks.
Mr Richard Kamajugo, the Uganda Revenue Authority commissioner for customs, said the strike affected international trade taxes most since those who closed shops are mainly importers.
 
“In terms of international trade we collect between Shs8 billion to Shs10 billion a day,” Mr Kamajugo told Daily Monitor yesterday. “And because almost all the traders are importers, any inactivity by them affects our collection quite significantly.” He, however, promised to furnish this newspaper with details today, adding that beside the traders’ strike, other factors also influence revenue collections.
The commissioner said the tax body could recover the shortfalls in the course of the month given that traders have now resumed business. Ms Esther Nakulima, who imports clothes, told Daily Monitor she had lost close to Shs1 million in the four days of no-business. “I lost between Shs200,000 and Shs500,000 daily in profits,” she said.
Mr Issa Ssekito, the traders’ association spokesperson, said Kacita has 150,000 members, but estimated that only 10,000 that actively participated in the four-day strike could have registered a cumulative loss of Shs3b in profit after -sales.
“All the busy shops in Kikuubo and other major spots that supply products didn’t work. Money lenders didn’t do business. Forex bureaus were closed, including our major markets in DR Congo, South Sudan, Burundi and Rwanda. All that translates into profit lost,” he said.
Mr Emmanuel Turyamuhika, the Uganda Bankers Association executive director, said both the bankers and traders bit their fingers. “Both sides lost business. We couldn’t bank and they didn’t receive any money from the banks either,” Mr Turyamuhika said when asked about the extent of losses the strike had on the commercial banks. He could not estimate the losses, saying it is too early for the banks to accurately figure out the damage of the strike.
Latest Bank of Uganda reports show that up to 20 per cent of the loan requests to banks are for trade and commerce and another 22 per cent for construction and real estate, all sectors dominated by traders.
iladu@ug.nationmedia.com