City traders protest URA tax collection methods

URA officials seize untaxed phones. Traders have protested the methods used by the tax collectors. Photo by Abubaker Lubowa 

By  ISMAIL MUSA LADU

Kampala- City traders have protested the manner in which Uganda Revenue Authority (URA) is enforcing tax compliance, saying the methods being used will drive them out of business.

Kampala City Traders Association (Kacita) leaders say income tax assessment done by URA officers tends to be on the higher side, making it hard for traders to comply.




The Kacita members instead resolved in a meeting held earlier in the week that the ongoing enforcement of income tax be brought to a halt for at least a week to allow them learn more about the tax, which they also say is ambiguous.

 

“As we get ready to be educated about the income tax—specifically the aspect of post-audit, which is the biggest concern to our people (traders), we ask that this process (issuing of income tax assessment) be halted,” Mr Everist Kayondo, the Kacita chairperson said during the meeting.

He continued: “As long as our people (traders) do not understand this tax, they will not comply. So it is important that you stop storming their shops issuing them with assessment that will even cause heart attack to some of them.”




In recent weeks, the tax collectors have been issuing tax assessment (estimate of tax defaulted) to traders running shops in city complexes and arcades, following information that most shop owners do not pay income tax.

Income tax is a tariff that government impose on money/income generated by shops or entities.

By law, it must be filed every year by and individuals.
 


It is also one of the major sources of funds that the government depends on to finance its activities.

Income tax is filed yearly so as to determine whether the businesses owe any taxes or are eligible for a tax refund.

Ms Dora Okuja, the URA manager in charge of Central Service Office, told the Daily Monitor after talking to the traders in Kampala, that enforcement of income tax is long overdue given that it has already been suspended for nearly two years.




She said: “We believe that we have done enough sensitisation, so there is no way we can halt this exercise again.”

“ However, we are committed to continue with tax education, targeting the traders and also we shall have our officers teach them more about income tax as they go about with the enforcement,” she added.