By Winniefred AKinyi
In an effort to widen the tax base and check on taxpayer compliance, Uganda Revenue Authority conducts operations around the country to enforce different tax heads, seize uncustomed goods and assess non-compliant taxpayers.
The most recent operation was in Mid-Western Uganda in Kasese District where URA using its Tujenge bus combed the District identifying non-compliant traders, landlords, VAT qualifying taxpayers that are declaring their taxes under the presumptive tax regime and enforcing usage of Digital Tax Stamps.
In Mpondwe for example, unregistered landlords were identified through information shared by their tenants and according to Julius Nandeeba – Kasese DT Station Head, these traders will be followed up and given time to register and thereafter issued with assessments.
A number of VAT qualifying traders who had been identifying as presumptive taxpayers were also identified and assessed according to their appropriate category. On the sidelines of the excursion, the team also seized non-stamped Kombuchas from traders who were transporting the batch to the city center.
A fuso truck registration number UAP 320F was intercepted in Kisinga trading center as it delivered unstamped Kombuchas to a shop. The truck and its occupants were driven to the Kasese DT Office where the trader was cautioned and had the drinks affixed with the digital stamps after which he was allowed to distribute them.
Located at the border of Uganda with Congo, Kasese is a business hub with large volumes of trade happening especially at the border in Mpondwe. Despite this, collections are still low in the district especially for VAT and rental tax.
This according to Nandeeba is mainly due to the high levels of non-compliance from traders and the rampant smuggling of goods in Bwera and Mpondwe.
Nandeeba notes that while traders are paying high rent at the border, most landlords are not yet fully compliant with rental tax.
“It is well within our knowledge that a number of persons still trade without being registered for Taxes and even those who have got TINs still remain non-compliant well knowing that URA is so lean on ground and might never reach everywhere,” he says.
He adds that large traders exporting items to Congo open small shops and declare under presumptive tax which also bites into the would-be revenue.
“This is why with support from the Tujenge team, we have been able to identify some of these taxpayers. We shall continue to engage them to ensure that their compliance is improved,” Nandeeba.
Nandeeba, however, acknowledges that there is an information gap between the authority and taxpayers with some of them expressing that small businesses are not supposed to pay taxes. This he says illustrates the need for continuous engagement and sensitization which the authority has to do.
The URA Tujenge bus is a mobile tax van which traverses different areas offering URA services including TIN registration and amendment, and Tax advisory services.
