Tax evasion hits sh24b

Nov 19, 2002

APPROXIMATELY sh24 billion is lost every year in tax evasion at border posts from traders, processors, and smugglers and through other forms of bribes and corruption

By Juliet Waiswa

APPROXIMATELY sh24 billion is lost every year in tax evasion at border posts from traders, processors, and smugglers and through other forms of bribes and corruption.

According to a research carried out by the Institute of Policy Research and Analysis, 72% of the firms surveyed considered corruption as a major constrain to business investment.

The forms of corruption detrimental were identified as bribery, evasion of taxes and discrimination.

In his presentation at the Nile International conference Centre last Friday, on the Impact of Corruption in the Private Sector, Milton Ayoki of the Institute of Policy Research and Analysis, said that corruption affects mainly the business community the investors.

“According to the firms interviewed in and around Kampala, firms experience delays in delivery goods from customs office, bribery, and discrimination while clearing their goods and this forces them to use agents which in most case over value their goods. This results in overtaxation,” he said.

He also cited the need for incentives to investors who are the biggest employers.

“There is need to set up a level ground for traders and remove the issue of favouring some companies when taxing their goods, taxes should all fall under the same category”, Tezikuba said.

The seminar, drew participants from URA, government, donors and NGOs, was organised by the Anti Corruption Coalition Uganda (ACCU), a coalition of civil society organisations institutions and individuals concerned with the rampant corruption in Uganda.

In another development, the Uganda Freight Forwarders Association (UFFA) has strongly spoken out on unnecessary delays in clearance of mechandise of their members at border entry points. Bent Andersen, the UFFU chairman, said that the bureaucracy they experience was hurting client confidence serioulsy.

Ricks Kayizzi reports that this was during the group’s workshop.

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