URA collects Shs15b taxes in Lira City
What you need to know:
- According to him, URA is currently running a campaign called 'Mpa e-Reciept Yange' and the whole point is to have individuals seek receipts upon purchase of items.
Uganda Revenue Authority (URA) has recorded an annual increase in tax collection in Lira City to a tune of over Shs15 billion.
Lira is both a commercial and industrial Lango regional city for nine districts of Dokolo, Amolatar, Kwania, Apac, Kole, Oyam, Alebtong, Otuke and Lira.
The City has 18 commercial banks, Bank of Uganda currency centre, more than 10 micro financial institutions, 48 large factories and over 50 large supermarkets, most of them owned by foreign investors of Asian origin.
According to Mr Geoffrey Mujabi, URA Station Head IN Lira, the tax body was able to collect Shs15 billion in taxes, 80 percent of which was from Lira City.
"We have registered growth of revenue collection from this region to the level of 35% this year compared to the previous year. And 80% of this came from Lira City since it is a business hub," Mr Mujabi told this publication.
He said in the past, the tax body had been collecting between Shs13 billion and Shs14 billion annually and attributed the revenue collection improvement to compliance by tax payers.
"Somebody may be wondering why we collected only Shs15 billion in a year. But there is another department in Kampala which directly collects revenue from the other districts in Lango," Mr Mujabi explained.
He said that there are 87, 000 tax payers in the city.
He said that in Lango sub-region, URA has 312 registered Value Addition Tax (VAT) tax payers
"For you to be able to register for VAT, your turnover should exceed a minimum of Shs150 million a year, that is the threshold for VAT," Mr Mujabi said.
According to him, URA is currently running a campaign called 'Mpa e-Reciept Yange' and the whole point is to have individuals seek receipts upon purchase of items.
"So we encourage tax payers to embrace the receipt campaign because our objective is to reach out and do less of penalty," he said.
Mr Bosco Ogwang Edola, Uganda Chambers of Commerce and Industry coordinator for north and part of north eastern Uganda said this is a new government policy encouraging cashless transaction like it is happening in other Countries.
"They are trying to sensitize people on electronic transaction where if they buy anything in a supermarket they should be issued with e-receipt. That system is already working in other Countries even in Kenya,” he added..
