In a major win for the Uganda Revenue Authority (URA), enforcement officers have intercepted a suspected smuggler attempting to evade UGX 1.9 billion in taxes on over 3,800 unregistered mobile phones. The arrest, carried out by URA’s elite Team One, followed a tip-off from a newly enlisted confidential informant.

The raid occurred at a warehouse in Old Kampala, where officials uncovered the illicit shipment. According to the URA, the smuggler is believed to be a key figure in a sophisticated network trafficking phones into Uganda through unregulated channels.

“This operation underscores the ongoing battle against tax evasion and illegal trade that undermines our economy,” URA said in a statement released on December 12, 2024.

The demand for affordable smartphones in Uganda has fueled a rise in smuggling activities. With approximately 30 million phone users in the country, smugglers exploit high demand by bringing in devices through unofficial routes, bypassing taxes that legitimate importers must pay.

“These phones often originate from countries like China and Dubai, entering Uganda without proper documentation or adherence to customs regulations,” URA officials explained.

The agency noted that the illegal trade not only deprives the government of much-needed revenue but also creates an uneven playing field for legitimate businesses.

Investigators revealed that the suspect is part of an extensive smuggling ring that involves intermediaries and corrupt insiders. The network is said to be responsible for distributing these phones to various markets in Kampala and beyond.

While the smuggler arrested in the operation is a significant figure, URA officials pledged to continue dismantling the network and holding all collaborators accountable.

To curb smuggling, the URA has enhanced its enforcement strategies, employing advanced surveillance, intelligence-sharing, and profiling techniques to monitor high-risk individuals and goods.

The authority also urged Ugandans to abide by customs regulations and warned that those caught in illegal activities face severe consequences, including fines and imprisonment.

“This case serves as a reminder of the critical role customs enforcement plays in protecting Uganda’s economy. The URA remains steadfast in its mission to secure the country’s borders and ensure compliance with trade laws,” officials added.

As the crackdown on smuggling continues, the URA’s commitment to safeguarding public resources and supporting legitimate businesses remains unwavering.