Busoga traders demand tax clarity and affordable credit

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Traders across the Busoga sub-region have voiced growing concerns over what they describe as burdensome tax procedures imposed by the Uganda Revenue Authority (URA), alongside prohibitively high interest rates from microfinance institutions.

They say these challenges are stifling business growth and threatening livelihoods. Many cited abrupt tax assessments, limited awareness of tax obligations, and aggressive enforcement tactics as major issues.

During a stakeholders’ meeting held at Jinja City Hall on May 28, 2025, both small and medium-sized enterprise (SME) owners expressed their frustrations through the Uganda National Traders Alliance (UNATA) and local leaders, saying that the current systems are not only frustrating but are also hindering business growth and sustainability.

“Most of us don’t fully understand how URA determines the taxes we’re supposed to pay. We need simplified information and more engagement, not abrupt assessments and penalties,” said Asuman Mupela, a member of the Taxi and Pick-ups Owners Association.

They also accused URA of poor communication and imposing unregulated taxes on trade activities. Small-scale traders, particularly in rural areas, reportedly lack the digital literacy and infrastructure required to comply with online tax systems, which often results in penalties and business disruptions.

Other issues raised included the lack of proper sensitisation and access to tax education programmes, especially for those operating in rural markets. Many noted that language barriers and limited digital literacy further complicate compliance with online tax filing systems.

“We are not refusing to pay taxes. All we want is fairness and clarity on the taxes, while the microfinance institutions should also regulate their interest rates. One can’t build a business in fear with unclear charges,” he added.

Godfrey Katongole, the UNATA president, stated that the alliance has so far held meetings in 10 towns to gather data on the challenges traders face. 

He emphasised that URA lacks adequate sensitisation programmes, and that a formal report on regional challenges will be presented to the President. Ten representatives will be selected to represent each region.

He raised concerns about URA's plan to abolish groupage (consolidated imports), saying traders would not accept it unless fair policies are introduced. 

He also cited poor road networks, such as the Kasese–Mpodwe and Mityana–Fort Portal roads, as major obstacles to business in central and western Uganda.

Katongole assured traders that the formulation of a national savings and credit cooperative organisation (SACCOS) is in its final stages, and regional SACCOS will be affiliated with it.

Steven Mukhairwe, the chairperson of the Jinja City Traders’ Association, encouraged traders to remain confident and stressed the importance of having a unified voice through the formation of regional SACCOS to strengthen unity among traders.

Edward Lwanga, the Jinja city clerk, praised the traders for their resilience and urged the leadership to remain focused on development.

He commended the traders’ patience and called on them to embrace a culture of saving and focus more on trade-related matters rather than insecurity.

Maria Kasasa, the deputy mayor of Jinja Southern Division, urged traders to be proactive in seeking information about taxes instead of staying silent and later resisting payment. She cautioned against relying on politicians to solve tax-related issues and encouraged traders to attend trade meetings.

She also appealed to the government to consider granting tax holidays for local traders, pointing out that such incentives are often given only to international investors.

Michael Kasozi Basalirwa, the Southern Division deputy RCC, encouraged the business community to support existing trade associations rather than opposing them. 

He pledged to work with URA to carry out market sensitisation and urged traders to participate in political processes to influence favourable legislation.

He added that once UNATA establishes its national and regional SACCOs, it will help reduce dependence on high-interest loans.