Involve private sector in formulating new taxes - NMG-U
Mr John Ssendagire, the Chief Executive Officer of City Side investments (centre), and staff receive an award as the winner of the 2019 Mid-Sized Companies Survey at Hotel Africana in Kampala in 2019. PHOTO/ FILE
What you need to know:
- Mr Omollo pointed out that the current numerous taxes have made the manufacturing sector less competitive, as it has to contend with cheaper goods from the East African region.
Government has been urged to involve private sector in formulating and drafting new taxes to ensure fair outcomes of tax policies.
This call comes amid complaints from numerous members and businesses in the private sector who feel burdened by the levying of taxes without prior consultation on how it affects their operations.
Mr Johnson Omollo, the Acting Managing Director of Nation Media Group (NMG) Uganda, made this appeal during the Top 100 mid-sized company's budget forum on July 20.
"There must be broader inclusion of the private sector when the government, through Parliament, drafts new taxes, so they can provide their perspective on how it will affect businesses," he said.
According to him, instead of introducing new taxes, the government should focus on broadening the tax base through increasing productivity, especially in the agricultural sector.
Mr Omollo pointed out that the current numerous taxes have made the manufacturing sector less competitive, as it has to contend with cheaper goods from the East African region.
He called on private sector players to adapt their business strategies to accommodate the introduction of new taxes, emphasising the need for broader consultations before such decisions are made, as the private sector's volatility is a significant consideration.
Mr Richard Nuwenyesiga, the Deputy Director of Science, Technology, and Innovation at Uganda Investment Authority (UIA), highlighted a lack of information among most Small and Medium Enterprises (SMEs) in the country regarding available opportunities that could benefit them.
"There are existing benefits such as tax exemptions, waivers, and reduced taxes on goods made from local raw materials, but most SMEs lack access to this information, hindering them from taking advantage of these opportunities," he said.
In response to this information gap, the government, through UIA, plans to launch a national SME portal in mid-August. The portal will provide SMEs with access to information on various programs that can benefit them.
By involving the private sector in tax formulation and providing better access to beneficial information, the government can create a more conducive environment for businesses, promoting growth and development in Uganda.
