Reply to thread

Message

[QUOTE="Munyaradzi Mafaro, post: 46902, member: 636"]
Business owners at Kampala's Kikuubo market say Uganda's tax system threatens to destroy small traders. The Uganda Revenue Authority has stepped up efforts to collect more taxes from businesses that avoid payments. Government officials want to reduce the 5 trillion shillings lost each year from tax evasion. About half of all small businesses currently operate without paying proper taxes. The revenue authority has begun using digital tools and more audits to find these companies.

Traders complain that multiple tax rates make it impossible to earn profits. One example shows a business owner buying goods for 1 million shillings and selling them for 1.05 million shillings. That trader must pay 369,000 shillings in various taxes on just 50,000 shillings of profit. The new 6% daily withholding tax will take effect on June 30. A shop selling 3 million shillings worth of goods each day would lose 180,000 shillings daily to this tax.

The Electronic Fiscal Receipting system creates additional problems for small businesses. Many suppliers cannot provide the required digital receipts for purchases. This forces traders to pay taxes twice on the same goods. Companies with sales above 500 million shillings must hire accountants for audited financial records. Business leaders have asked President Museveni to change the tax policies before more shops close permanently.
[/QUOTE]

Name