Busoga traders call on government to raise community awareness on taxes

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JINJA- The business community in Busoga region has called on the government to put more emphasis on sensitizing traders before introducing new taxes.

They also say there is need for the Uganda Revenue Authority (URA) to ensure continued education of communities on the value of paying taxes to avoid instances of resistance.

Emmanuel Muyanda, general secretary of Jinja City Traders Association, says traders tend to refuse to pay taxes for reasons ranging from unexplained tax regimes to unfair means of tax collection and discrimination.

“There should be no discrimination in tax collection but today we see that some businesses are taxed and others are left out even though they operate in the same environment,” he said on Saturday, July 20, 2024, during a meeting of Busoga traders’ leaders.

The meeting at the Jinja Town South Division offices was organised by the Federation of Uganda Traders Associations (FUTA) ahead of the traders’ scheduled meeting with President Yoweri Museveni on July 31, at Kololo in Kampala.

The Kololo meeting, according to Katongole, who is the vice chairman of FUTA, is aimed at discussing the Electronic Receipt and Invoicing System (EFRIS) introduced by URA early this year, which sparked protests from traders.

Traders also believe that there is need for the Uganda Revenue Authority (URA) to provide continuous education to communities on the value of paying taxes to avoid instances of resistance. (Credit: Charles Kakamwa)

During the protests, traders in Kampala and cities across the country closed their businesses for several days, but the president later suspended tax collection pending his meeting with business leaders.

Katongole said that while EFRIS may not be bad, it was imposed on the business community without prior sensitization, while their businesses are struggling due to high taxation.

“Awareness is key, no government can function without collecting taxes, but we are advocating for a win-win situation because we as traders also want to survive,” he said.

Beatrice Kamukama, a trader at Jinja Central Market, called on the government to streamline tax policies, arguing that their businesses are choking on taxes.

“Almost every week a new tax is introduced, we are frustrated because we spend so much and earn so little, many businesses have closed,” she complained.

Humphrey Mutaasa, a trader, said inclusiveness in planning and implementing tax regimes can provide a lasting solution to the challenges facing the business community.