The government commissioned a team of researchers from Makerere University and the Uganda Revenue Authority to get the facts responsible for the big part of the economy that is not recorded and taxed, also referred to as the Shadow Economy.
“We are cognizant of the fact that there are challenges we need to address - the digital economies. For example, Jumia, Google, Facebook and Kikuu, to mention but a few are around us. We have all used them in a way or another, and yet we are not registering revenue numbers in terms of collections from them,” Akol said.
“Nobody understands their issue. Maybe they are playing tribal politics because if you are accusing somebody, you should have concrete proof to say this man has stolen this money, this man has done and mismanaged this and therefore he can go. So accusing somebody and yelling on top of your voice doesn’t make what you are saying right. They have not provided evidence,” Prof. Obua said.
On Wednesday, URA sealed off the offices of The Observer at Tagore Crescent in Kamwokya Kampala for alleged non-tax compliance. A team of URA enforcement officers stormed the offices and locked the main gates with seals.
Abuka noted that although placing a charge on mobile money withdrawals would increase revenue, the tax is inefficient, uncertain and complex. He explained that the mobile money levy goes against tax policy
Premaz Kirabo Mayega was for scraping the tax. Tusime Peter wonders what will happen to those who had paid the 1. George Mugwanja said tax should be simple and easily collected. Henry Othieno wonders why we do not tax the multinationals. Hackim Niwazy, commends my message but informs me that they are taxing mere deposits. I have been following up all these issues for a long time. Here are my comments on each of the points:
According to John Kiyaga, the Regional Manager Domestic taxes, URA collected Shillings 9 billion from districts in the Rwenzori region in the 2016/17 financial year. He however, says they collected Shillings 12 billion by May this year indicating a 26 percent increase.
Bukooli North MP Gaster Mugoya cites the Economic Intelligence Report saying that from 2013 to 2016, Uganda has lost 1.2 trillion Shillings in tax evasion to the steel sector alone. Members of Parliament have resolved to investigate allegations of tax evasion in Ugandas steel sector.
A statement issued by the Authority shows that Mbogo abused privileges available to diplomats by purchasing large quantities of tobacco tax-free from specialist duty free sales companies. He was not a diplomat but abused the system available to him as a trusted employee of the Ugandan High Commission, the statement reads.
The activists say government can recover a quarter of the Ugx 13trillion Budget if it puts effort into collecting money lost to tax evaders. According to research undertaken by the group, it is estimated that Ugx 1,331billion is lost through various types of tax leakages, including tax credits, tax incentives and tax evasion.