Government to Establish Tax Complaints Office in Kampala
Government plans to establish a new tax complaints office in Kampala to address trader concerns and improve tax compliance, announced by URA’s Commissioner General, John Musinguzi Rujoki.
The government announced its intention to establish a new tax complaints liaison office in Kampala. This office aims to address concerns, particularly from traders, regarding taxation, with the goal of mitigating hostilities towards tax compliance, as stated by John Musinguzi Rujoki, the Commissioner General of the Uganda Revenue Authority (URA).
Mr. Rujoki emphasized that this office, to be located in the central business district (CBD), will not be involved in tax collection but will instead house a dedicated team focused on educating taxpayers, assisting them in overcoming technological barriers, and aiding in tax return filing, particularly for those without accountants. These remarks were made during a local radio talk show on Saturday, April 13, 2024.
This initiative follows recent protests against the implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) in the country. Since the previous Monday, business activities, notably in downtown Kampala’s Kikuubo hub, have been disrupted due to traders opting to close their shops in protest over various operational concerns. The traders have stressed the necessity of the President’s intervention and a meeting involving all relevant stakeholders to effectively address these issues.
EFRIS encompasses the use of Electronic Fiscal Devices (EFDs), e-invoicing, or direct communication with business transaction systems to manage the issuance of e-receipts and e-invoices under the Tax Procedures Code Act 2014. Musinguzi clarified that EFRIS aims to streamline the taxation process by eliminating intermediaries who have been withholding VAT funds, thus enabling URA to reach the end of the value chain. This initiative is expected to bolster tax collection, which currently stands at one of the lowest rates in the region. Musinguzi expressed optimism that enhancing tax collection efficiency to at least 20 percent of GDP, up from the current 14 percent, will reduce dependence on foreign aid for the country’s development programs.
