PRESIDENT MUSEVENI, A KINGMAKER IN TAX RESOLUTIONS.

By KATUMBA GERALD.

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Governments rely on tax revenue to finance investments in human capital, infrastructure, and public services for their citizens. The quality of government services and a country’s development can be affected if taxes are not collected or are misappropriated by the government.

According to statistics from the Uganda Revenue Authority (URA), about 2.6 million Ugandans were registered taxpayers as of September 2022, but only about 1 million Ugandans are actively paying taxes.

It has become a norm in Uganda for traders to close down their Business whenever they are protesting against what they refer as unfair Taxation from Uganda Revenue Authority calling for attention from the President.

Discontent over taxation is simmering among Kampala traders, with mixed messages emerging about their response, closing down their Businesses and this time over the new tax collection system “Electronic Fiscal Receipting and Invoicing System” (EFRIS).

This discontentment manifested in a weekend call for a strike. On Monday 14^th April 2024 some shops, particularly larger ones registered for VAT, remained closed in areas like Kikuubo and Shamba Complex. However, not all shops participated.

Consultations, Meetings and Debates emerges from leaders, policy makers, traders and the general public calling on Government to intervene to save the economy.

Almost the entire country involved in this Debate but the crucial issue one could ask, who of those in authority can save the situation, a heavy weight has been on the side of URA but as a Government entity however much it’s independent but it’s under the control of the Executive Arm of Govt.

There has been numerous protests from traders on issues of taxes but URA wasn’t in position to settle the disputes until the President intervene and resolve the matter.

The country has witnessed on several occasions whenever Traders are discontented they immediately run to state House to meet the President, even if the Parliament intervenes the final resolution lies in the hands of the president.

President Museveni has exhibited a sense of being the kingmaker for the problems affecting traders in Uganda, URA, Ministry of trade, Uganda Investments Authority, Uganda Manufacturers Association, Parliament and other concerned organs on matters of the economy are overshadowed by the President’s involvement in matters concerning traders grievances.

Even this time the President has already intervened in EFRIS issue, had a meeting with KACITA and other traders associations and Uganda Revenue Authority leadership a meeting that was held in State House.

He ordered URA to immediately scrap off the penalties that were imposed on traders on charges of violating the EFRIS system, he also ordered URA to stop harassing traders while collecting taxes.

He called for a general meeting with traders and all other stakeholders in trade industry and taxes on 7^th May 2024 in Kololo Airstrip for final resolutions and way forward. It was after all this traders announced a re-opening of Businesses they had closed almost for a full week.

Parliament passed some resolutions on the same matter with Speaker Anita Among gave an order to URA to stop harassment and a review of the EFRIS system her pronouncement were backed by almost the majority of the MPs but the situation remained the same, when the kingmaker passed an order the situation started normalizing.