URA strategising for improved revenue collection from informal sector

TAXITION | COVID-19 |

Uganda Revenue Authority (URA) has embarked on strategies that will enable them to tap into the informal sector.

John Musinguzi, the commissioner general for URA said a lot of revenue goes uncollected from business transactions in the informal sector

He said whereas the tax register increased to over   1.3 million taxpayers, the number is still low if the government is to witness a significant increase in tax to GDP ratio.

This was during the 4th and last episode of the Bomba ya Business summit held at URA headquarters in Kampala on Friday. Among other issues, the panelists discussed the impact of COVID-19 on various sectors of the economy and strategies being put in place to mitigate the situation.

Musinguzi said they have encouraged and embraced online services in filing tax returns and tax payments during this challenging period.

"URA has been supportive of the general taxpayers during this Covid-19 period in all ways.

"Warehousing period for imported goods had been extended, we delayed filing of tax returns and tax payments had been suspended, among other interventions," said Musinguzi.

Bomba ya Business has been running since November 13 reviewing feedback from the public on how best they can remain in business amidst the challenges of the COVID-19 pandemic.

Bomba ya Business summits have been further intended to re-ignite Small and Medium Enterprises (SMEs) from the impact of Covid-19.

According to Vincent Seruma these summits have been part of the taxpayers' appreciation activities for the year 2020.

He said many Ugandans have continued to pay taxes in time without being forced, based on what the government does out this collected revenue through improved road infrastructure network, electricity, schools, and health services among others.