UGANDA, Adjumani | Real Muloodi News | Local construction contractors in Adjumani District are raising concerns over the alleged withholding of taxes amounting to over USh420 million meant for the Uganda Revenue Authority (URA) under the Development Response to Displacement Projects (DRDIP).
The contractors claim that despite deductions made from various sub-projects for the financial years 2018/2019 to 2021/2022, there’s been no evidence of remittance to URA.
In a letter dated April 6 addressed to the Chief Administrative Officer (CAO) and delivered to the district office, the contractors expressed their grievances.
They seek clarity regarding the 6 per cent withholding tax deducted from the total project value as mandated by law. The petition highlights the lack of documentation proving tax obligations met by the contractors to URA.
According to the contractors, taxes were deducted from projects undertaken by various companies within the district.
For instance, Kate Contractors, responsible for constructing classroom blocks, pit latrines, and other facilities at Zoka Primary School, reported deductions of USh14 million and USh52 million from separate projects.
Similarly, Silver Courts and Analog Construction Company reported deductions ranging from USh19 million to USh33 million from their respective projects.
Other affected contractors such as Equatoria Brothers, Mavadi Multi-purpose Ltd, Marinyo Brothers, Jamo Contractors and Suppliers, and G. Lagua Company also reported deductions from their projects, totalling the alleged unremitted amount of USh420 million.
In response to these allegations, the Adjumani District CAO, Mr Grandfield Oryono, refuted claims of directly collecting taxes from contractors.
He emphasised that withholding tax under the DRDIP project is not the responsibility of the district office but lies with the community sub-project officials (CPMCs).
Mr. Oryono clarified that the district merely facilitates the process and does not handle tax payments.
Mr Abubakar Gulam, the DRDIP desk officer, acknowledged the direct deduction of 6 per cent withholding taxes from community sub-project accounts.
He admitted challenges in remitting the funds to URA but denied any misuse of the tax money. Mr. Gulam assured the affected contractors of addressing the issue promptly to ensure proper documentation of tax remittances to URA.
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