The Commissioner General of the Uganda Revenue Authority (URA), John Rujoki Musinguzi, has encouraged Ugandans to work together as a nation for better tax collection and progress, saying what is currently collected in taxes is still low for the country to develop.

Musinguzi noted that until Uganda attains a 20% tax on its Gross Domestic Product (GDP) level, it cannot talk about sustainable growth without begging and taking all sorts of loans that will be hard to pay.

“Something you cannot avoid in life is taxes; it is a responsibility we need to follow as a country to grow. As a nation, we need to join hands and work together. The support is dwindling, and therefore, as a country, we must be self-sufficient,” Musinguzi said.

He made these remarks on April 4, 2024, while appearing on local television to discuss Uganda’s taxation system and whether the tax burden is fully being distributed.

Musinguzi stated that, if everyone is to be sincere and fair, all Ugandans have not been paying their fair share of taxes, adding that this is because most people don’t know about these taxes and those who do, don’t maintain the status quo.

“Tax is fair in a way; the more income you earn, the more tax you are required to pay,” Musinguzi said.

He advised that genuine businesses should not be disrupted with unreasonable demonstrations but should be left to thrive, and if there are issues, they ought to engage with the parties concerned and solve those issues amicably without affecting business operations.

However, according to Ron Kazooba Kawamara, Chief Executive Officer of Hugamara Group, the problem is not the taxes but the people being taxed.

“Taxes continue to be levied on a few people, which continues to widen the tax burden and cripple businesses and the economy. Our tax-to-GDP ratio shows that a significant number of Ugandans are not paying taxes. We need to bring them to the tax pot; farmers who are making lots of money are not paying taxes,” Kawamara said.

According to the URA, only 1 million people are active and file tax returns, and the number is still very small compared to the total population in Uganda.

Uganda’s tax ratio to the GDP is one of the lowest in the region, in the range of 12 to 13% of the GDP.