UGANDA, Kampala | Real Muloodi News | To bolster tax collection and improve compliance, the Uganda Revenue Authority (URA) has embarked on a mission to enhance its relationship with landlords, particularly those in the bustling Kampala Central Business District.
The tax collection agency recently convened a meeting at its Nakawa headquarters to address the issue of low compliance among city landlords, despite the implementation of technology-driven solutions aimed at streamlining rental tax collections.
URA Commissioner General, John Musinguzi, voiced his concerns during the meeting, emphasising the need for a strategic rethink.
He highlighted that URA, as well as the entire country, is grappling with the consequences of inefficiencies in the rental tax collection system.
The numbers from the previous fiscal year reflect a mixed picture, with UGX 215.10 billion collected in rental tax against a target of UGX 171.09 billion.
While this performance seems impressive at first glance, URA argues that substantial room for improvement exists if all property owners can be brought into compliance.
To address this challenge, URA is adopting multifaceted strategies, including enlisting the support of business leaders in identifying non-compliant landlords.
One notable initiative involves conducting a comprehensive head count of commercial buildings in the city. This counting exercise will be carried out in collaboration with the Kampala Capital City Authority (KCCA) and leverages URA’s Rental Tax Compliance System (rTCS), which integrates data from various government entities to accurately match properties with their rightful owners on the URA tax register.
The involvement of local business leaders is crucial in bridging the compliance gap.
During the meeting at the Nakawa headquarters, these leaders pledged to provide URA with valuable information regarding the actual rent paid by tenants—a practice they suspect some landlords manipulate by issuing fake receipts.
For those who remain non-compliant, URA will resort to legal enforcement measures.
Local Leaders Engage in Tax Education
Meanwhile, in a separate event, over 60 Chairpersons from Kampala participated in a tax education engagement hosted at the JBK hotel.
The discussions during this session revolved around various aspects of taxation, including presumptive tax, income tax, business registration, and the importance of proper record-keeping.
Michael Masembe, the Acting Manager of Tax Education, encouraged the Chairpersons to adopt robust record-keeping practices.
Such practices not only simplify dealings with tax authorities but also enhance transparency and accountability.
Another highlight of the meeting was the introduction of a USSD code by Ibrahim Bbossa, Assistant Commissioner of Public and Corporate Affairs at URA. This code facilitates the payment of presumptive tax and other forms of income tax.
However, attendees were cautioned to remain vigilant against individuals who falsely claim to offer favours or exemptions on behalf of URA.
In response to these tax education initiatives, Mukasa Sentamu, Chairperson of Muno B, City House, lauded URA for their efforts.
He emphasised that such interactions between local leaders and URA play a vital role in bridging the knowledge gap between taxpayers and the tax authority.
He also pointed out the need to educate the public about their tax obligations, as there are often middlemen involved in the tax collection process.
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