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Extend tax laws education to more Ugandans – experts
Mr Johnson Omollo, the acting managing director of Nation Media Group-Uganda (3rd left), and representatives of the partner companies sponsoring the Top 100 Mid-Sized Companies Budget Forum in Kampala on Wednesday. PHOTO/STEPHEN OTAGE
What you need to know:
URA says they are doing their best to sensitise the public about their tax obligations
Ignorance of tax laws and principles of taxation are the main causes of business failures and low domestic revenue collections, experts have said.
The experts said the above-mentioned challenges have hindered Uganda Revenue Authority (URA) from realising the annual revenue targets.
Speaking at the KPMG-NMG Top 100 Mid-Sized Companies Budget Forum on Wednesday, Mr Edgar Mukasa, an associate director of tax and regulatory services at KPMG, said: “For a very long time, the biggest gap is sensitisation. A lot more has been done in the city centre as opposed to the rest of the country and yet we are looking at expanding the taxpayers register across the country.”
“There are still a lot of taxpayers who should be on board and yet they have not been, and therein lies the opportunity for URA and for us as a country to grow that database,” he added.
Mr Mukasa said their survey has shown that many businesses are committed to paying their taxes if enlightened about their tax obligations because they want to keep their businesses open once they know the consequences of noncompliance.
He, however, said URA is carrying out enforcement on businesses that are unaware of what they are supposed to do.
Ms Tracy Judith Akello, the supervisor of policy rulings and interpretations at URA, said they are trying their best to sensitise the public about their tax obligations.
“Yesterday (Tuesday), we were at the Royal Complex with traders of the Tujenge Bus. It is in our interest that everyone knows about tax. The more taxpayers we have, the less tax we shall all be paying,” she said.
Mr Ibrahim Bbossa, the assistant commissioner of corporate affairs at URA, said the low tax morale and failure to collect taxes has broad implications on either side.
He said tax education can never be enough because of the varying perceptions people have towards taxation and the competing needs even when they have money.
“Tax education is ongoing but it has to be consistent. What we are experiencing is that the majority of taxpayers are able to pay taxes voluntarily. About 90 percent of our taxes come from people who are willing to pay taxes willingly. The remaining 10 percent have to be forced to pay the taxes,” he said.
Mr Benson Mwesigwa, an associate director at KPMG Uganda, said budget forum was a feedback platform for the business community and policy actors to meet and discuss the issues that need to be addressed as part of the package that KPMG and NMG offer participants in the annual Top 100 Mid-Sized Companies Survey.
The topic of the forum, Developments in the tax regime, implications to growth and business sustainability, also meant to provide the business community with expert advice on the implications of the 2023/2024 national budget and opportunities it presents to them.
It was also meant to help them know how to approach sponsors such as dfcu Bank, URA, Uganda Investment Authority, Ministry of Tourism, Wildlife and Antiquities, and Uganda Securities Exchange and Innovation Villages, to get incentives and financing options to keep their businesses afloat.
Mr Johnson Omollo, the acting managing director of Nation Media Group – Uganda, said as a media house and a channel of communication, they brought together the Top 100 mid-sized companies and government ministries, departments and agencies, to discuss developments in the tax regime.
He added that this can lead to either business growth or collapse because the taxes which were introduced this year were announced clearly by the taxman.
