The Uganda Revenue Authority (URA) has expressed confidence in the success of the Authorised Economic Operators (AEO) programme.
This initiative aims to facilitate trade and promote the security of the international trade supply chain, bringing tangible benefits to both URA and compliant traders.
These remarks were made during the 10-year anniversary celebration of the AEO programme at the Sheraton Hotel in Kampala, under the theme "Walking the Journey of Voluntary Compliance."
According to URA officials, the AEOs contribute approximately 40% of the Cost, Insurance, and Freight (CIF) value and about 18% of domestic tax revenue.
Sarah Chelangat, Commissioner of Domestic Taxes at URA, who represented Commissioner General John Musinguzi, highlighted the importance of strengthening and expanding this program.
She believes it will attract more voluntary tax contributors.
Over the past decade, she said the AEO programme has demonstrated its potential to improve trade facilitation, revenue collection, and supply chain security.
"The programme is more than just a policy or regulation, it is a mindset, culture, and lifestyle based on the belief that greater achievements are possible when people work together,"she said.
Chelangat praised AEO clearing agents, noting that their integrity and professionalism have contributed significantly to the success of the programme.
The AEO programme has delivered tangible results for businesspeople, enhancing efficiency and effectiveness.
Chelangat called on traders to become part of the AEO programme, highlighting the enhancements and improved benefit regime for AEOs.
Through digitalization and automation, URA aims to provide more value to their clients.
Currently, URA has 129 national AEOs, accounting for 40% of the value of its international trade operations, totaling about 1.7 trillion shillings and contributing about 84% of customs tax revenue.
Abel Kagumire, Commissioner of the Customs department at URA, stated that since the programme's inception in 2013, the contribution to revenue has increased from 4% to 33%.
The volume of trade has also seen a significant boost, particularly in project cargo, raw materials, and intermediate goods.
The AEO programme has allowed for accurate, quick, and voluntary tax payments, resulting in increased revenue collection for URA.
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This collaboration has a positive impact on companies and the business fraternity, contributing to the development of the country through voluntary tax payment.
AEO is a regional trade facilitation program recommended by the World Customs Organization (WCO) to ease trade and customs clearance for tax-compliant importers and exporters.
URA encourages companies to join the "trusted taxpayers" list and enjoy benefits such as fast clearance of goods through simplified procedures and reduced inspection.
This can be achieved through the AEO programme.
In May 2021, Uganda signed an AEO Mutual Recognition Arrangement (MRA) with China during the 5th AEO Global conference held in Dubai.
This arrangement aims to improve Uganda's trade share in Africa by adopting China's good trade practices as a major global player.
An AEO is a highly trusted company by the revenue body, expected to assess itself and willingly pay taxes even with minimal surveillance.
These companies are able to self-regulate, self-assess, and work seamlessly with URA in their operations.
The AEO programme plays a vital role in regional trade facilitation, recommended by the World Customs Organization (WCO) to ease trade and customs clearance for tax-compliant importers and exporters.
