• Fri. Sep 30th, 2022

UGANDA, Kampala | Real Muloodi News | Uganda Revenue Authority (URA) has added 14 companies to its list of the most trusted taxpayers in Uganda, adding on the 81 enterprises that were already on the Authorised Economic Operators Program (AEO).

The Authorised Economic Operators (AEO) is an initiative that seeks to facilitate trade and promote the security of the international trade supply chain. 

Some of the notable added companies added to the list of the most trusted taxpayers include:

  • Com Foam
  • Jaffer Freighters
  • Blowplast
  • Unistrong Investments
  • Tian Tang Group
  • Uganda Tobacco Services
  • Nile Roofings
  • Hong Hai Wood
  • Luuka Plastics, including Adas Enterprises
  • Mandela Millers 

“These are people who, on their own, declare their taxes and pay them with no enforcement action. We want to appreciate and congratulate the members who have been enrolled today and we want to encourage them to continue leading by example,” URA Commissioner General (CG) John Musinguzi said during the launch of AEOs.

Benefits of Being Added to the List of the Most Trusted Taxpayers

Musinguzi said that under the AEO, businesses that comply with customs regulations benefit from preferential treatments such as fast clearance of goods through simplified procedures and reduced inspection.

In the long term, companies shall avoid costs related to customs enforcement, delays and risks will be minimal, which will reduce the insurance costs of the company.

Because of quicker clearance of goods, the turnaround time will also increase, leading to increased turnover, hence improved profits.

Companies will offer better service to their customers than unauthorised competitors because of the simplified clearance processes.

Another added advantage is improved internal control systems. A company with the AEO status expects to maintain robust internal systems and controls. Once listed, it means that internal business reduces its risks and threats.

Speaking in an interview after being listed among the AEO category, the National Chairperson of Uganda Clearing Industry and Forwarding Association, Mr Jaffer Abdallah, said before going through the processes, most members didn’t trust the initiative.

According to Mr Abel Kagumire, the URA commissioner of customs, the initiative will expose selected traders/companies to several other benefits that include;

  • The ability to submit electronic declarations with no supporting documents 
  • Make pre-arrival declarations 
  • Traders will be able to self-manage bonded warehouses 
  • Priority treatment when cargo is selected for control
  • Able to choose a place for physical examination of goods
  • Automatic renewal of licenses after paying the license fees 
  • The privilege of getting a withholding tax exemption status 
  • Have an extended license period, among others.

The initiative also aims to tackle challenges that could undermine the benefits of flawless cross-border trade and professionalise operations to acceptable standards.

READ MORE LIKE THIS:

Understanding Rental Income Tax; Tax Evasion will Cost You

URA Commissioner General Makes Clarifications on Rental Income Tax

The Real Estate Tax Policy Can Boost Development in Uganda