The Independent Uganda: You get the Truth we Pay the Price
Kasese, Uganda | THE INDEPENDENT | Smuggling of goods through porous borders in Mpondwe, Kasese district is frustrating the efforts of the Uganda Revenue Authority (URA) to achieve its tax collection targets.
Smuggling involves the supply, distribution, and sale of products on which applicable taxes in the country of consumption are not paid.
The half-year results for the financial year 2022/23 show that the URA registered a revenue shortfall of over Shs94.8 billion.
Irene Mbabazi Irumba, the Assistant Commissioner in the URA, notes that smuggling not only contributes to the entry of illicit goods but also affects the body’s tax collection rate. This has a direct implication on the level of service delivery.
Smuggling is also causing unfair competition in the market, and smuggled goods pose health risks to consumers since such items are often inferior and counterfeit.
Mbabazi highlights that smuggling should not be a one-man fight, and the body is engaging border business communities to appreciate the value of paying taxes.
The tax body has increased enforcement of border patrols and surveillance of non-gazetted routes, and this is being complemented by stakeholder engagements on tax compliance.
Julius Nandeba, the URA team leader in Kasese district, encourages voluntary disclosure to enable taxpayers to return to fully compliant status with respect to legal obligations.
Nandeba notes that their findings indicate that many people get tax Identification Numbers (TINs), but they never comply with paying their taxes. These people need to be brought back on board without penalizing them.
Mapoze Sylvester, the LC III chairperson of Mpondwe Lhubiriha town council, believes that the vice of smuggling is still common among small-scale traders who cannot afford the high taxes given the low volumes of goods they trade-in. He also thinks that many people have limited information regarding tax compliance.
Allan Kambere blames tax evasion at the border on the high-handedness used by officials who do not listen to the voices of “small traders.”
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