Curb tax evasion through incentives
Posted Wednesday, October 30 2013 at 01:00
The filing of false tax returns and tax evasion are the major vices hindering maximum revenue collection from businesses liable to pay taxes in Uganda. This financial year, URA is reported to have already recorded a short fall in revenue collection of about Shs230 billion.
To limit such tendencies, URA should adopt a system whereby the public is mobilised to always demand for receipts upon purchase of goods and services. This can be realised through a mechanism where businesses like supermarkets give receipts for every transaction inscribed thereon with special bar codes which can be checked against a lottery draw. URA should then conduct monthly raffle draws of receipts to get winners. The overall winner takes the jackpot prize. This system can, with no doubt lead to tax compliance because all sales are indirectly reported to URA.