URA to collect over Shs 30bln tax revenue in Mbarara
MBARARA – Uganda Revenue Authority [URA] expects to collect Shs 30.6 billion from Mbarara region to contribute to the overall target of Shs 29.7 trillion targeted in the current financial year 2023/24.
According to Robert Wamara Rumanyika, manager for Public and Corporate Affairs at URA, in the last financial year 2022/ 20223, they collected Shs 28bln in the region against the target of Shs 32bln.
He said this on Tuesday during a post-budget engagement with the business community in Mbarara City.
With the continuous tax education and sensitisation programmes, Rumanyika said URA will convince the taxpayers in Mbarara region to pay their fair share of taxes this financial which carries a budget of Shs 52.7trn to be partially funded by URA tax revenue collections.
“Last financial year we collected tax revenue of Shs 28 bln against the targeted Shs 32 bln. This year, we are required to collect Shs 36 bln which I believe we shall be in position to collect through such engagements,” he said.
He said Uganda’s tax-to-GDP ratio stands at only 14 percent, thus urging the business community in the informal sector to pay taxes to increase this figure .
He added that “If you look at our register, we have about 3.5mln taxpayers and the statistics from Uganda Bureau of Statistics [UBOS] show that over Shs 10mln people inclusive of individuals and companies that earn a living and capable of paying taxes are not paying, meaning that the tax burden is lying on few individuals who can be easily traced.”
“If you have the tax to GDP of 14 percent it is even a miracle that the government is able to function, operate and even build social economic infrastructure with the little tax that is collected. So I urge everyone of us let us embrace the role of tax payment to redeem our country from multiple borrowing,” he said. Figures show by end of June 2023, Uganda’s debt stood at Shs 88.9trn.
During the meeting, Simon Mwijuka, chairman Mbarara City Traders Association [MBACITA] appealed to the government to establish a one-stop centre for government entities to ease service delivery to the traders.
“Let NIRA, URA, URSB, and UNBS be housed in one building to minimise transport costs, confusion, and corruption,” Mwijuka said.
Meanwhile, Julius Turyamwijuka, manager Bank of Uganda Mbarara Branch warned commercial banks not to deny traders and farmers and loans availed by government under various schemes such as Small Businesses Recovery Fund [SBRF] and the Agriculture Credit Facility [ACF].
“I have been getting many complaints about business people going to banks and failing to access the facilities mentioned here but I want to inform you that that SBRF is national fund and whoever qualifies for it must receive it because it comes from the central coffers,” Turyamwijuka noted.
He added that the ACF is a private-public partnership that can be accessed at 12 percent payable between 6 months to 8 years while the SBRF is accessed by the small and medium enterprises [SMEs] up to a tune of Shs 200mln at an annual 10 percent interest rate payable within in 4 years.
He advised traders to always keep records if they want to benefit from government coffers. “What I request from you is to make sure that you keep your records and have your bankable projects ready if you are to benefit from such financing schemes established by the government,” he said.
Robert Kanusu, Resident city commissioner Mbarara City North encouraged entrepreneurs to focus on mass production and target other markets beyond East Africa.
He also advised traders in Mbarara City to insure their products against risks such as fire outbreaks, and bad weather among others.
“What insurance do we have for our businesses? I have seen huge investments in Mbarara that are at risk of fire among other urban risks and disasters. How much have you invested to ensure that that risk is covered by insurers?” Kanusu said.
https://thecooperator.news/ura-launches-e-receipt-tax-campaign-in-mbale-city/
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