By Blair Atwebembeire
OPINION | In recent times, Uganda Revenue Authority (URA) has found itself at the center of a media storm, with fingers pointed at it for supposedly unfair taxation practices that are purportedly stifling businesses. However, upon closer examination, it becomes evident that URA is often unfairly targeted, as its role primarily revolves around enforcing the taxation regime passed by Parliament rather than dictating it.
Let’s start by clarifying the fundamental roles of both URA and Parliament in Uganda’s taxation framework. URA, as the name suggests, is primarily tasked with the collection and enforcement of taxes. It acts as the bridge between taxpayers and the government, ensuring that the revenue necessary for the functioning of public services is collected efficiently and effectively.
On the other hand, Parliament holds the key to shaping Uganda’s tax policies. It is the legislative body responsible for passing tax laws that ultimately govern URA’s operations. Therefore, any grievances regarding the taxation system should be directed towards Parliament, as it holds the authority to amend existing tax laws and introduce new ones.
One aspect of Uganda’s tax system that has garnered significant attention is the Electronic Fiscal Receipting and Invoicing Solution (EFRIS). Contrary to popular misconception, EFRIS is not a tax in itself but rather a system designed to streamline the collection of taxes. It aims to enhance transparency and accountability in the tax collection process by digitizing transactions and minimizing opportunities for tax evasion.
However, it is crucial to acknowledge that EFRIS, like any other system, is not without its flaws. While its implementation may have been well-intentioned, there have been legitimate concerns raised by taxpayers, leading to protests and strikes. These concerns primarily revolve around the practical challenges and technical glitches associated with EFRIS, which have hindered its smooth implementation.
Furthermore, it is essential to address the underlying frustration felt by many Ugandans regarding the allocation of tax revenues. Despite dutifully fulfilling their tax obligations, citizens often find themselves disillusioned by the perceived neglect of key public services such as roads and infrastructure. This disconnect between taxation and service delivery amplifies the sense of injustice and exacerbates the burden of taxation on ordinary citizens.
In light of these challenges, it is imperative for both URA and Parliament to adopt a more consultative approach towards tax policy formulation and implementation. This entails actively engaging with stakeholders, including businesses and taxpayers, to identify areas for improvement and address concerns proactively.
Moreover, there needs to be greater transparency and accountability in the utilization of tax revenues to ensure that citizens’ contributions are effectively channeled towards the provision of essential public services. This requires robust oversight mechanisms and a commitment to fiscal responsibility from both government institutions and elected representatives.
While URA plays a vital role in enforcing Uganda’s taxation regime, it is crucial to recognize that the power to shape tax policies ultimately lies with Parliament. By fostering greater collaboration and dialogue between these institutions and engaging with taxpayers in a meaningful way, Uganda can move towards a more equitable and sustainable taxation system that fosters economic growth and development for all its citizens.
Mr. Blair Atwebembeire is an Advocate of the High Court of Uganda. E-mail: blair.advocates@gmail.com
