Uganda Spends UGX 752B in Tax Administration Costs

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In short
Uganda loses 752 billion shillings in administering and collecting taxes. Richard Jabo, a principal economist in the Finance Ministry, says the tax burden is so huge that a number of reforms are being introduced to reduce it.

Uganda loses 752 billion shillings in administering and collecting taxes.
 
Richard Jabo, a principal economist in the Finance Ministry, says the tax burden is so huge that a number of reforms are being introduced to reduce it.
 
Jabo says in 2011, the ministry of trade, industry and cooperatives, passed a statutory instrument that is expected to reduce trade licensing burden by at least 25 percent. This would save the taxpayer about 188 billion shillings per annum.
 
He says some of the reforms include making tax payment forms freely available online, reducing the number of procedures in paying taxes, reducing the number of days and establishing service centres closer to taxpayers and online and mobile phone tax payment systems.
 
According to Jabo, with education and more innovation, administering taxes in Uganda could go down even further.

Speaking at the launch of the mobile phone tax payment system earlier, Allen Kagina, the Commissioner General of Uganda Revenue Authority, said tax compliance among small taxpayers is high except that many have access issues.
 
Kagina said that is why they introduced the mobile phone payment system to enable such taxpayers, most of whom have access to the mobile phone, to fulfill their tax obligations easily.
 
Robert Okello, an economist by training and a printer on Nasser Road in Kampala, says an efficient tax administration system has the potential of boosting the economy by making government have enough resources in its purse.

 

About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."

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