Improve tax compliance culture through sensitisation of citizens

Tax awareness and tax education campaigns serve Uganda well when they result into an improved tax compliance culture in the country. Any improvement in compliance with tax obligations by taxpayers would assist Uganda to generate the much-needed tax revenues to finance the ever-increasing government expenditure.
The Constitution in Article 17(1)(g), clearly states that it is the duty of every Ugandan citizen to pay taxes. Despite this civic duty imposed on every Ugandan citizen, Uganda Revenue Authority (URA)continues to grapple with attaining widespread voluntary and timely compliance as some Ugandans have low tax morale hence half-hearted commitment towards paying the due taxes imposed on them.

Tax morale refers to the level of motivation among taxpayers to pay taxes and is usually measured by the voluntary willingness to comply with tax laws and obligations. Tax morale encompasses the perceptions and the attitudes of the tax payers towards taxes and can, therefore, oscillate from low tax morale to high tax morale under different environments. These perceptions may be positive or negative, for example, sentiments that taxes are “low or high’’, “fair or unfair’’, “simple or complex,” among others.

Through concerted effort, it is possible to improve the tax morale and tax-paying culture and many governments have introduced several initiatives intended to improve the tax morale among their tax -paying populations. The use of systematic tax education and tax awareness initiatives has been identified as one of the factors that could improve the tax morale.

A tax-literate people that have been empowered with relevant tax knowledge are expected to make informed decisions in favour of voluntary and timely compliance with their tax obligations.
It is, therefore, the duty of government to provide relevant and comprehensive tax education, at all appropriate levels. Indeed, under the URA, the government has and continues to roll out several tax education and awareness campaigns covering new tax developments, and recognition of compliant taxpayers, among others. However, more needs to be done by the government in this regard.

Tax education should be introduced in the school curricula to enlighten children about their tax responsibilities at an early age. The earlier the tax knowledge is introduced to the young impressionable minds and receptive souls, the better empowered the future generation of taxpayers will be. The Bible aptly recommends in Proverbs 22:6 to “train up a child in the way he should go; and when he is old he will not depart from it’’.

It is also important to note that effective tax education should have the potential to nurture positive mindsets and attitudes in favour of voluntary tax compliance. Taxpayers and prospective taxpayers should be made aware that collection of taxes is the revenue mobilisation tool available for government and that it is a collaborative effort where each person makes a fair contribution. Through effective tax education, the people should be rallied, encouraged and challenged to demonstrate their commitment to the common good of society through making the tax contributions required to finance social goods and services like public schools and health facilities.

The adverse consequences of tax evasion and aggressive tax avoidance to the progress and development of a society should also be explained to the taxpayers as part of tax education. It is generally the tax payers that have understood the relevance and the social value of the taxes they pay who are likely to exhibit high tax morale.