MSMES urged to embrace e-payment systems

Jun 11, 2015

Tax payers in the small and medium enterprises (SMEs) sector have been urged to embrace electronic payment systems as the innovation that will help them reduce operation costs.

By Andrew Ssenyonga

Tax payers in the small and medium enterprises (SMEs) sector have been urged to embrace electronic payment systems as the innovation that will help them reduce operation costs.


The Uganda Revenue Authority (URA) commissioner general, Doris Akol said e-tax payment initiatives, like electronic billing machines and mobile tax filing systems, also help SMEs to keep clean books of accounts.

Akol said, "E-tax payment platforms ease tax payment and save time compared to the old way of filing tax returns where tax payers had to spend hours queuing at banks or URA offices."

This was during a one-day tour of Kampala business community last week where she was engaging tax payers on how to clean their books of accounts.

However Ben Mugasha, chairman of Bemuga Forwarders Limited, said they were not aware of some of the payment systems, and urged URA to carry out massive sensitisation drives among SMEs.

"Most of us don't even know about these platforms, while others lack the skills to use them. Therefore, we are left with no option but to line up for hours to file our tax returns.  So, URA should make it a priority to sensitise SMEs on the different tax payment systems to ease the process," Mugasha said.

Akol said the tour was aimed at explaining to tax payers in the SME sector the various types of taxes and how they apply to different business categories.

"It's essential for SME operators to understand the different tax categories, like patent tax, Value added tax (VAT), customs and excise tax, income tax and how they apply."

She added that the authority had introduced various platforms that tax payers can use to file returns.

"SMEs need to know that paying on time saves them the inconveniencies, including paying penalties," she noted.

Akol also lauded Bemuga forwarders for exceptional good citizenship and its contribution to national development in terms of tax payments.

"We should pay tribute to leading tax payers in the country for their contribution to the development of the country," she said.

Akol said, "You are one of those rare Ugandan companies which craves for excellence in payment and filing of its tax obligation – a perfect tax payer.

"Notwithstanding the fact that the year 2014 was a very challenging one for most businesses and tax payers in Uganda, you displayed good corporate citizenship by paying all the taxes by the due dates.  Your contribution to the national economy in terms of taxes is most remarkable."

Mugasha expressed his appreciation to the URA and stated, "We are indeed honoured by the Commissioner's recognition of our company's contribution to the national economy.

"We believe this honour and our corporate social investments are evidence of Bemuga forwarders' good corporate citizenship and our focus on making significant contributions to the development of Uganda."

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