URA Commissioner General, John Rujoki Musinguzi, has called on traders in Mbarara City to embrace a disciplined financial approach through a structured three-fold business model as he pushes for stronger business growth and improved tax compliance.
The call was made during an engagement with traders and local leaders under their umbrella body, the Mbarara City Traders Association aimed at strengthening trade and building a competitive economy.
In his address, Musinguzi encouraged voluntary tax compliance, noting that resistance to taxes is not new.
“Taxes have never been popular even since biblical times but they remain essential for national development,” he said.
He therefore advised traders to adopt a structured financial discipline through a three-envelope model of setting aside funds for business capital, taxes and giving back to God.
“Honesty in both business and faith is key to growth,” he added.
The Commissioner General also called for stronger collaboration between traders and URA urging openness in resolving tax matters.
“Come clean and talk to us. We must listen to each other and work together with mutual respect,” he noted, while reminding taxpayers of their right to object to unfair assessments.
He further highlighted ongoing government relief measures, encouraging traders with tax arrears accumulated up to June 2024 to take advantage of the waiver window ending 30 June 2026.
“Pay the principal tax and the interest and penalties will be waived. Voluntary disclosure is another opportunity to stay compliant,” he said.
On market fairness, Musinguzi raised concerns over untaxed locally produced beverages such as kombucha, noting that they create unfair competition for compliant manufacturers like Nile Breweries Limited.
Meanwhile, the Chairperson of the Association, Simon Mwijuka Sezi urged participants to fully utilize the opportunity to engage directly with the Commissioner General. He boasted that the dialogue had attracted traders from across the region, including KACITA, Fort Portal, Kabale, Kiboga, Ntungamo and Mubende to resolve their tax challenges.
During the session, Hafsa Seguya, the Supervisor Tax Outreach emphasized the need for traders to distinguish between taxes and statutory fees.
“When you register a business with URSB, you pay a registration fee and when you obtain a trading license from local government, those are administrative charges not taxes,” she explained.
By Garry Fortunate Murungi
