URA tasked to come up with strategies to collect revenue from informal sector businesses

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URA tasked to come up with strategies to collect revenue from informal sector businesses.

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Society Organizations have asked the taxe collection body of Uganda, the Uganda Revenue Authority (URA) to come up with strategies that can enable the body to collect revenue from people working in the informal sector.

Mr. Xavier Ejoyi, the country director of Action Aid Uganda while attending a dialogue meeting held in Kampala under the theme, ‘Youth-led Solutions on Wednesday, said that young people under the age of 35 years constitute 78 percent of the population but the tax body hasn’t come up with specific ways to collect revenue from this group.

Ejoyi gave an example of hawkers and bricklayers. He said hawkers who are seen as a liability especially on Kampala streets if helped can contribute immensely to the total revenue since already the informal sector constitutes more than 50% of GDP.

Bricklayers, especially in the villages according to Ejoyi, can also contribute to the taxe base because most cases such people make bricks and sell them but do not bring back anything inform of taxes.

Responding to these concerns, Isaac Gyagenda, the Supervisor, Tax Education at URA said they have a plan for the next five years where they are strengthening collaborations and ensuring that different groups of people get well acquainted with the tax system through tax education.

He says there have also been structural changes within the tax body whereby they are putting in place a whole department on research which will give those pointers of which areas are untapped such that they develop strategies to generate revenues from there.

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