August 14, 2023
By Joshua Niyonshima
URA together with other MDAs recently met with key players in the mining and petroleum sectors to discuss compliance and strength their working relationship.
During the meeting, mine owners were urged to contribute their fair share of taxes, especially in light of the increased collection target.
“Tax collection targets from this sector are high yet the tax rates have not changed. In addition, the sector is one of the most incentivized , but for a good cause. I urge you to comply for the development Uganda,” said Simon Esunget, the Ag. Manager Customs Entebbe Airport.
Esunget also called for cooperation between the mining and petroleum sectors to maximize benefits from both industries.
His call was reechoed by Frank Mugenyi, a Principal economist from the Ministry of Finance, who urged mine owners to operate formally.
“The tax base is low, and many have evaded taxes, especially due to the informal nature of businesses. The extractives sector is one of those operating informally on a large scale; therefore, this discussion is very key to seeing how to address the various concerns on the side of the private sector as well as the public sector,” noted Mugenyi.
In his remarks, Aggrey Ashaba, the General Secretary of the Chamber of Mines and Petroleum, expressed his appreciation for the engagement, noting that it provided a forum to voice their concerns.
“The hope is to create synergy between the private sector and the government agencies we work with so that the concerns we have can reach the policy makers,” he remarked.
In an effort to effectively address challenges faced by taxpayers and enhance compliance, URA has stepped up sectoral engagements. These also provide an avenue to provide targeted tax education.