MP's Demand Apology for Closure of Avemar Shopping Arcade

1007 Views Kampala, Uganda
Members of parliament have today put the finance minister Ezra Suruma to apologize for the recent closure of Avemar Shopping Arcade. Avemar shopping arcade, in Kampala was closed last week over failure to pay 1.6 billion shillings in tax arrears to the Uganda Revenue Authority. URA says that the shopping arcade's proprietor, Joseph Behakanira, failed to pay Value Added Tax (VAT), Rental Tax and Directors Tax. The rental tax is levied on rent paid by the tenants, while the director's tax is levied on the income of a director. Tenants pay the proprietor rent, which is taxed by URA and that is called rental tax. The Kasilo county MP, Elijah Okupa, said the closure was unwarranted because it affected the tenants many of who pay their rent to the landlord. He argued that the Uganda revenue Authority should have instead asked the tenants to pay rent on their account until the outstanding arrears are cleared. Okupa said the finace ministry munst apologise for this action. But Suruma said URA did nothing wrong by closing the arcade. He warned that the revenue body will not hjesitate to clamp down on more tax defaulters.

 

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