URA wants the govt to pay up arrears
Apr 07, 2009
EDITOR—I wish to draw your attention to your article entitled “URA seeks to waive sh150b tax arrears’ published on April 4. The article is a misrepresentation of what the Uganda Revenue Authority (URA) has been discussing with MPs during the parlia
EDITOR—I wish to draw your attention to your article entitled “URA seeks to waive sh150b tax arrears’ published on April 4. The article is a misrepresentation of what the Uganda Revenue Authority (URA) has been discussing with MPs during the parliamentary inquires this week.
Let us set the record straight. URA is seeking that Government ministries and other institutions related to the Government should pay up their outstanding arrears. These institutions are responsible for the bulk of tax arrears owed to URA.
Their payment will improve URA’s revenue collection especially in light of the current shortfall in collections. To-date Government owes URA approximately sh3.2b in import taxes alone. Additionally, Government owes URA sh8.479b in domestic taxes, bringing the total amount owed to approximately sh12b. Of this amount, ministries alone owe URA approximately sh5.9b.
The domestic taxes are in respect to Pay As You Earn (PAYE), Withholding Tax and Value Added Tax. PAYE is charged off the salary of employees, meaning that Government ministries and other institutions related to Government most likely taxed their employees but have not yet remitted the money to URA.
In 2006, Government specifically waived all its outstanding arrears (mainly VAT) owed to URA. Further to this, in 2008 Government granted another waiver to all businesses for outstanding arrears in the financial years before 2002.
Sarah Birungi Banage
Assistant Commissioner; Public and Corporate Affairs Uganda Revenue Authority
Let us set the record straight. URA is seeking that Government ministries and other institutions related to the Government should pay up their outstanding arrears. These institutions are responsible for the bulk of tax arrears owed to URA.
Their payment will improve URA’s revenue collection especially in light of the current shortfall in collections. To-date Government owes URA approximately sh3.2b in import taxes alone. Additionally, Government owes URA sh8.479b in domestic taxes, bringing the total amount owed to approximately sh12b. Of this amount, ministries alone owe URA approximately sh5.9b.
The domestic taxes are in respect to Pay As You Earn (PAYE), Withholding Tax and Value Added Tax. PAYE is charged off the salary of employees, meaning that Government ministries and other institutions related to Government most likely taxed their employees but have not yet remitted the money to URA.
In 2006, Government specifically waived all its outstanding arrears (mainly VAT) owed to URA. Further to this, in 2008 Government granted another waiver to all businesses for outstanding arrears in the financial years before 2002.
Sarah Birungi Banage
Assistant Commissioner; Public and Corporate Affairs Uganda Revenue Authority