URA targets SMEs for added revenue collections

By Patrick Jaramog

Majority of the Small and Medium Enterprises (SMEs) that constitute over 70% of the market don’t pay taxes, a senior Uganda Revenue Authority official has said. But in a bid to increase revenue collections, URA is working with the Private Sector Foundation, the umbrella body that brings together the SMEs to enhance this.

URA Assistant Commissioner for Corporate Affairs Sarah Birungi Banage said for several years the effort has been on the largest tax payers who constitute only 10%. “Now we are taking our focus on the SMEs. We have realized that working closer with people will help us raise more revenue. Tax education is our biggest component,” she said.

Banage was speaking during a Private Sector Foundation (PSFU-) Uganda press conference ahead of the 7TH annual SMEs week slated for March 4- 6.

“We can only realize more revenue if we work together with PSFU who are closer to the SMEs,’ said Banage. She said the new Commissioner General Doris Akol’s move is to achieve more revenue collection by taxing SMEs.

PSFU chief Gideon Badagawa said there are over 1.5 million SMEs in the country yet very few pay taxes. “The tax burden is on the 10% largest tax payers. We need to learn to pay taxes and the demand for accountability,’ Badagawa.

Badagawa noted that to realize vision 2040, Ugandans must adopt the culture of paying taxes. “The country must also enhance job creation and broaden the export base,” he said.

Badagawa said this year’s theme of “stimulating business growth and supporting SMEs will help the small micro traders get market for their products through quality improvement of their products.

Ruth Biyinzika Musoke the director at PSFU said this year’s SME annual week is critical because it will shape the way SMEs will compete in the region.

“As we celebrate the life of our longest serving board chair, Prof. James Mulwana, we should keep the legacy that he started,” she said.

Sarah Nakibuuka the Private Sector Foundation Uganda Public Relations manager said over 45 companies had united to make this year’s SME event successful. “Among the firms supporting this event are DFCU Bank, Post Bank, Diamond Trust Bank, URA and several government departments,’ she said.

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