Gov't to Adopt Online Revenue Payment System

The Government has introduced Point of Sale devices that will be used in registration, computation of tax and issuance of payment receipts to taxpayers.

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 hall.

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.