Removing ‘Empooza’ will free small traders

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OPINION

By Jovrine Kaliisa

As we prepare for the swearing-in ceremony next month, I have been reflecting on videos of President Yoweri Kaguta Museveni’s educational and humorous speeches and interviews.

One of them particularly caught my attention, where he spoke about his intention to write an Executive Order directing the stoppage of ‘empooza’ (small market levies) on small-scale traders who are striving to escape the subsistence economy.

This message resonated deeply with me because of the three positions I have held in my career, which form the basis of my reflections on the President’s noble message.

First, it touches me directly as the first and former Deputy National Coordinator of the Parish Development Model (PDM) Secretariat, an entity that coordinates all government ministries and agencies to deliver their mandate with the parish as the epicentre. By design, the monetary component of PDM, called the Parish Revolving Fund (PRF), or what the public refers to as ‘PDM Money’, is intended to provide capital to Ugandan households in subsistence (producing only for consumption). Most of these people have very small-scale or absolutely no income-generating activities, and when they receive the PRF, they use it to start or strengthen these small businesses.

In rural areas, many engage in primary agricultural production, while in towns they are involved in activities such as market vending, and are directly affected by the ‘empooza’.

Without a doubt, taxation remains very important to the country’s revenue collection. As of the last financial year, domestic revenue accounted for almost sh22 trillion out of the sh31.6 trillion collected by URA.

However, the President rightfully argues that while taxes are important, the ‘empooza’ serves to stifle the progress we are making in the fight against the subsistence economy and poverty.

To add clarity to this, I need to wear my second hat, as the Chairperson of National Resistance Movement (NRM) in Ibanda District. The PDM is a brainchild of the NRM Manifesto 2021 2926 and is firmly rooted in the NRM ideological pillar of socio-economic transformation. In the NRM, we believe that one should seek first household income, and the rest will fall in line.

It is therefore our duty not only to empower households to generate income, but also to provide an environment for their businesses to grow. In Runyankore, we have the word ‘okworora’ (to nurture and bring up a child).

It is a deliberate NRM strategy to okworora these small and young businesses so that they can grow. That includes providing capital, improving road networks, and removing inhibiting taxes like the ‘empooza’. The President explains it well that the empooza is a small direct tax against people who are making very little money on a daily basis. He argues that if removed, it allows proprietors of these small enterprises of roasting gonja, chicken, and selling utilities to have more purchasing power.

With more purchasing power, they can spend on other items like foodstuffs, clothing, and leisure, where they will still be taxed indirectly. Ultimately, this will provide the people with even more money to reinvest in their businesses.

In my third hat as the Woman MP Elect for Ibanda District, I implore the President to expedite his commitment to write the Executive Order so that it can come into force sooner rather than later. He committed that if the ‘mpooza’ is being used for running these urban centres, they can come and discuss with government to get more resources instead of making it a burden on the low-income earners whom we are fighting tooth and nail as government to redeem. Being a member of the body charged with debating and formulating laws, I would gladly throw my weight behind something like this, for it brings financial freedom to Ugandans. Besides, if we cannot make the lives of our people easier and better, then what leaders are we?

The writer is the woman MP elect, Ibanda district and a former deputy national coordinator of PDM