The Government has introduced Point of Sale devices that will be used
in registration, computation of tax and issuance of payment receipts to
The device, uses an application also named IRAS that an administrator can use
to register a taxpayer, compute how much tax they are supposed to pay and also
print a receipt. The taxpayer can present the receipt to URA to pick their certificate
or trade licence.
The device shall use the World Bank-funded Integrated Revenue
Administration System- IRAS piloted by the government in districts like
Nansana, Gulu, Fort Portal, Amuria, Yumbe, Zombo and Adjumani.
Agnes Kahua, a consultant on IRAS working with government, says a
taxpayer can also download the application, register their business, input
their type of business and the machine automatically computes how much they are
meant to pay depending on location and type of business. The tax-payer can then
make payments through mobile money.
As such, when a tax administrator comes, they verify the
registration of the taxpayer and issue a receipt upon payment. At this point,
the administrator can automatically retrieve registration details of the taxpayer
such that if they (taxpayer) registered a different business to pay less tax, they
can be held accountable.
Kahua says the device automatically records the location of the
taxpayer and that it can be used to read a Q code on registration certificates
to ascertain authenticity.
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What has been available of the IRAS is the web Portal where a taxpayer
would register and get a number to use to pay tax. With the web portal, it is
also not possible to verify the authenticity of the registration certificate
except with plain eyes.
The devices shall be used first in Nansana Municipality, Makindye
Ssabagabo and Entebbe Municipality. All the three Municipalities have been
using the IRAS Web Portal in tax administration.
The Lord Mayor of Kampala City Erias Lukwago handed over the devices,
desktop computers and printers to the three municipalities on Thursday at City
Joseph Kimbowa, the Town Clerk of Makindye Ssabagabo says that the IRAS has
helped improve their tax collections and hopes that with the device they shall
collect even more.
Kimbowa says they activated the system in September 2020 and three
months they were able to collect over 2.9 Billion Shillings yet previously,
they could barely collect a billion shillings in the same period.
Kimbowa says the system has helped them curb under-declaration by
staff but also taxpayers.
He explains that there was a habit of tax administrators
collecting tax and forging receipts with much lesser amounts from what has been
paid by the taxpayer.
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Nansana Mayor, Regina Nakazzi Bakitte says that the system has
improved tax collections in the Municipality. She says the system was
implemented mainly in Busukuma and Gombe and has since realized more
registration of businesses and payments.
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James Ogwang, the Principal Financial Analyst- Local Revenue at
the Local Government Financial Commission says that the system has improved tax
collections and that they intend to extend to other districts including Mbale,
Soroti, Mbarara and Hoima among others.
He however asked local governments to improve on service delivery
as a means to improve compliance among taxpayers because they (taxpayers) what
to see that their contributions put to better use.