KAMPALA, Uganda — A scathing report released Wednesday by the Equal Opportunities Commission has laid bare the crippling effects of Uganda’s byzantine tax system, which imposes multiple levies on already-strained businesses and individuals.
The 2023/24 Annual Report on the State of Equal Opportunities in Uganda paints a dire picture of a taxation regime that threatens to suffocate the country’s fledgling economy. According to the report, taxpayers face a dizzying array of taxes, fees, and levies imposed by various government agencies, often on the same income.
“This is a ticking time bomb for our economy,” said Sarah Nalule Juuko, chairperson of the Equal Opportunities Commission. “Multiple taxation is stifling business growth, and if left unchecked, it will drive many entrepreneurs out of business.”
The report cites examples of property owners being taxed by multiple agencies, including local councils and the Uganda Revenue Authority. Traders and small business owners also face a plethora of taxes on goods and services.
“We are calling on the government to streamline the tax system and eliminate these multiple taxes,” Ms. Nalule Juuko urged. “It’s unsustainable and unfair to expect taxpayers to bear this burden.”
The report’s findings were echoed by Minister of Gender, Labour and Social Development Betty Amongi Akena, who emphasized the need to safeguard Universal Primary Education by eliminating extraneous fees.
Uganda’s taxation woes come as the country struggles to revitalize its economy, which has been battered by the COVID-19 pandemic and regional instability.
Critics argue that the government’s reliance on multiple taxation undermines efforts to promote economic growth and reduce poverty.
“The tax system needs a complete overhaul,” said one Kampala-based economist, who requested anonymity. “Until then, Uganda’s economy will continue to suffer.”
The Equal Opportunities Commission’s report has sparked renewed calls for tax reform, with many Ugandans hoping that the government will take heed and implement meaningful changes.
Discussion about this post