By Irene Kabakama
Manufacturers, under their umbrella organization, the Uganda Manufacturer’s Association (UMA), have called upon the Uganda Revenue Authority to look at registering more taxpayers especially from the informal sector, which they say is yet to be fully utilized for tax purposes. This, they say, will lessen the tax burden on other sectors that have already been brought into the tax-paying bracket.
This call was made early this week during the 2nd edition of the annual manufacturer’s budget dialogue to discuss the effects of the new proposed tax amendments on the manufacturing sector.
The unfair tax burden was one of the many concerns raised by manufacturers, with the rest centering around tax audits conducted at different intervals and by different teams, which they say can be cumbersome.
In response, URA’s Ag. Supervisor for Business Policy, Akello Judith Tracy, explained that the tax body has rolled out initiatives to bring in industries that were initially hard to tap into. She highlighted the Digital Tracking solution, which has facilitated the inclusion of the Kombucha industry, which was largely informal.
“Digitization has also helped URA get the information from stakeholders that have integrated their systems with us, and this is how we are keeping track of the non-compliant taxpayers,” she added.
Akello also highlighted the Domestic Revenue Mobilization Strategy, which addresses the expansion of the taxpayer register to facilitate growth in the tax-to-GDP ratio.
The engagement, which was premised on the theme “harnessing the power of industrialization and market access,” brought together different stakeholders including Honorable David Bahati, Minister of State for Trade, Industry, and Cooperatives (Industry), who advised the manufacturers to add value to their products, adding that this would fetch them more profits, which would have a ripple effect on Uganda’s tax-to-GDP ratio.
He encouraged UMA to provide a report on the deliberations for government to pick up on and utilize during policy formulation for the next financial year.
Following the reading of the National budget for the financial year 2023/24, URA embarked on a sensitization campaign to educate taxpayers about the proposed tax amendments, starting with the regional post-budget engagements that happened in June.
These have spread to several sectors, and similar interactions have taken place with business communities in Masaka and Kampala central business district, among other places.
