Non-tax compliance costing Uganda, says URA

Non-tax compliance continues to be a serious challenge for Uganda Revenue Authority, according to Dr Protazio Begumisa, the commissioner in-charge of internal audit and compliance.

Speaking at a tax payers’ stakeholders meeting in Mbale Town, Dr Begumisa said majority of tax payers have to be forced or threatened before they can remit their part of the bargain.

This, he said, makes URA lose a lot of time and resources as they lookout for defaulters.

“Many Ugandans will not hesitate to ask for services yet they don’t want to honour their part of the bargain when it comes to paying taxes. This is a very big challenge to the country,” he said.

Uganda Revenue Authority, Dr Begumisa said, has about 300,000 registered tax payers who have over time refused to remit their taxes despite several reminders.

This has resulted into continued frustration as the country seeks to widen its tax base to match up the tax to GDP ratio of at least 16 per cent. Currently, according to Dr Begumisa, Uganda has only 1.3 million registered tax payers remitting their taxes.

The meeting was part of the activities to mark the URA Tax Appreciation Week, which is scheduled begin today in Kampala.
The Week seeks to share and discuss challenges as well as appreciate tax payers.

Ms Stella Nyapendi Chombo, the URA assistant commissioner in-charge border affairs, policy and legal services, said the Tax Appreciation Week is intended to close the information gap between URA and tax payers.

Mr Nixon Twebaze, the URA Mbale manager-in-charge of domestic taxes, said out of 50,000 registered tax payers in Mbale, only 1,500 tax payers are compliant, indicating that majority of the people do not pay.