By Kamugisha Kabahweza Allan
The Uganda Revenue Authority recently held a sensitization in Yumbe district where it addressed taxpayer concerns and demystified myths around taxation.
The notion of double taxation proved recurrent as traders raised concerns about paying town council fees through the URA portal and then having the same entity collect taxes from them.
“URA collects money for the central government while council fees are for the local government,” Akilo Janet, a domestic tax officer at Koboko Station, explained the distinction between local council fees and taxes collected by URA.
“The local government collects the fees through the URA portal to streamline payments, and it’s the law,” she added.
Akilo further explained that all the fees collected on behalf of the government are remitted to the consolidated fund before the finance ministry reallocates the funds to the respective local governments.
The Tax Education Outreach and Koboko DT team made the sensitization last Friday during the last day of the door-to-door tax education and sensitization exercise in the West Nile region.
Team lead Joshua Muwonge reiterated that a trader cannot trade in any given local government without paying a trading license.
“A trading license allows you to operate your shop in your area, and without it, you cannot trade. URA only comes in to request you to contribute part of your profits as taxes,” Muwonge stated.
He explained that taxation laws require persons to pay taxes on their incomes, and traders should keep proper records to determine the right and fair tax to pay.
Residents, however, called for more engagements to equip them with information on taxes, the due dates, and their rights and obligations as taxpayers.
