Eronda
JF-Expert Member
- Dec 16, 2025
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The Uganda Revenue Authority (URA) said on Wednesday it would comply with a court order requiring it to pay about 1.66 billion Ugandan shillings ($450,000) to Babaana Children of Uganda after the tax body was found liable for the unlawful auction of donated medical equipment imported for a children’s medical facility.
The High Court ordered URA to compensate the charity after medical equipment donated from Switzerland and valued at about 1.4 billion shillings was sold at auction for just 4 million shillings.
Responding to public criticism following the ruling, URA said the events leading to the dispute occurred nearly a decade ago and that the officers responsible were dismissed after an internal investigation.
The goods stayed in URA Warehouse for a YEAR till Dec 2018. Reason for staying in the warehouse is because the taxpayer was completing constructing the medical facility,” Robert Kalumba, URA’s Assistant Commissioner for Public and Corporate Affairs, said in a post on X.
Kalumba said the equipment remained in a customs warehouse beyond the statutory warehousing period after arriving in Uganda in 2017.
He said that, under customs law, goods that exceed the statutory warehousing period may be auctioned. However, he acknowledged that there were failures in the process that led to the disposal of the medical equipment.
“Goods are tax exempt because they are medical in nature. Customs Staff at the time went ahead to auction the goods on the basis that they had over stayed the statutory warehousing time. The taxpayer complained about the Auction,” Kalumba said.
“URA lodged an investigation leading to staff responsible for the auction leaving the institution.”
The case stems from the auction of specialised medical equipment that had been imported from Switzerland for a children’s clinic being constructed by Babaana Children of Uganda.
Although the equipment qualified for tax exemption because it was intended for medical use, the court found that the auction was unlawful, resulting in the compensation award.
Source:Chimp reports.
The High Court ordered URA to compensate the charity after medical equipment donated from Switzerland and valued at about 1.4 billion shillings was sold at auction for just 4 million shillings.
Responding to public criticism following the ruling, URA said the events leading to the dispute occurred nearly a decade ago and that the officers responsible were dismissed after an internal investigation.
The goods stayed in URA Warehouse for a YEAR till Dec 2018. Reason for staying in the warehouse is because the taxpayer was completing constructing the medical facility,” Robert Kalumba, URA’s Assistant Commissioner for Public and Corporate Affairs, said in a post on X.
Kalumba said the equipment remained in a customs warehouse beyond the statutory warehousing period after arriving in Uganda in 2017.
He said that, under customs law, goods that exceed the statutory warehousing period may be auctioned. However, he acknowledged that there were failures in the process that led to the disposal of the medical equipment.
“Goods are tax exempt because they are medical in nature. Customs Staff at the time went ahead to auction the goods on the basis that they had over stayed the statutory warehousing time. The taxpayer complained about the Auction,” Kalumba said.
“URA lodged an investigation leading to staff responsible for the auction leaving the institution.”
The case stems from the auction of specialised medical equipment that had been imported from Switzerland for a children’s clinic being constructed by Babaana Children of Uganda.
Although the equipment qualified for tax exemption because it was intended for medical use, the court found that the auction was unlawful, resulting in the compensation award.
Source:Chimp reports.
