Tax payers challenge URA to leave hotels, meet customers on the ground

Mukono Taxpayers Want URA to Leave Hotel Meetings for Inclusive Tax Education

Mukono, Uganda | THE INDEPENDENT |  Taxpayers in the Mukono region are calling upon the Uganda Revenue Authority (URA) to reevaluate its approach to tax education. They are suggesting a departure from exclusive hotel meetings and a focus on reaching out to the last-mile taxpayers who are in dire need of information regarding VAT, EFRIS, TIN operations, and tax computation. This shift in strategy is perceived as a means to enhance transparency in revenue collection and bridge the understanding gap between tax collectors and taxpayers.

As part of a nationwide campaign to recognize taxpayers for their contributions, URA organized a “Tax Baraza” meeting in Mukono for its eastern Kampala region. The event drew participants from various sectors, including individual taxpayers, organizations, companies, traders’ associations, and political and religious leaders from the districts of Buyikwe, Kayunga, Mukono, and Wakiso.

However, many participants expressed dissatisfaction with the effectiveness of URA’s current communication and awareness strategies. Vincent Lukwago, the Chairperson of the Mukono Traders’ Association, emphasized that unclear tax measures and a lack of tax awareness have resulted in numerous business closures in the region that might have been prevented. He stressed the need for grassroots communication and a simplified approach to taxation, addressing issues such as TIN billing, among others.

Lukwago pointed out several irregularities, such as the continued billing of individuals who initially obtained a TIN for specific purposes and concerns regarding the EFRIS system. He underscored the importance of systematic communication and intensive sensitization to overcome these issues. Lukwago also urged URA to improve its communication by directly engaging with taxpayers rather than relying solely on hotel meetings, which may not be accessible to everyone.

Betty Nambooze, the Mukono Municipality legislator expressed concerns about URA’s approach to tax collection. She suggested adopting a more transparent British tax system, highlighting that Uganda is a member of the Commonwealth. Nambooze raised issues with the presumptive tax strategy and the way URA handles tax debts, even when a business is no longer operational.

She cautioned against fraudsters hacking into URA’s systems and inflating tax dues, often involving URA employees, which leads to unfair taxation. Nambooze called for adjustments in URA’s digital regime to benefit all taxpayers.

Monsignor Richard Kayondo, the Vicar General of the Lugazi Diocese, a tax-paying entity in the region, encouraged honesty in tax compliance. He quoted a biblical verse (Romans 13:3) to emphasize the importance of living honestly to avoid fear of authority. Kayondo also urged URA to provide a clear account of how taxpayers’ money benefits the community to foster better understanding and compliance.

He identified presumptive tax as a major source of misunderstandings between the authority and taxpayers, requesting URA to find solutions to this problem.

In response, Ibrahim Bbosa, the Assistant Commissioner for Corporate and Public Affairs, acknowledged shortcomings in tax administration, which sometimes lead to conflicts between taxpayers and collectors. URA is now shifting its approach from enforcement to engagement with taxpayers to improve their relationship.

During the meeting, URA recognized over ten taxpayers for their consistent compliance with tax payments, signifying a positive step toward strengthening the tax system in this region.

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URA