Uganda’s multiple taxation system chokes businesses

KAMPALA, UGANDA – Uganda’s complex taxation system is suffocating businesses and hindering economic growth, according to a report by the Equal Opportunities Commission.

“The traders have been coming to the opportunities commission citing multiple taxation… If you sit down to compile those multiple taxes, you will just get sick,” said Sarah Nalule Juuko, Chairperson of the Equal Opportunities Commission.

The report reveals that Ugandans face multiple taxes, fees, and levies imposed by various government agencies, often on the same income. This has led to widespread frustration among entrepreneurs and traders.

“We are recommending that Ugandans are overburdened with multiple taxation, and if it continues, people are going to get out of business,” Juuko warned.

Nalule highlighted that the report emphasizes the issue of multiple taxation and emphasized the need for greater involvement of Ugandans in the development of specific taxes.

“Another concern is about the need for Ugandans, to be involved while the different taxes are being developed, and the need for effective and tax administration. People are confused. One property is taxed by so many agencies, so people need to have a central place. Maybe they want a to actually consolidate all the taxes, so that we have one central point,” she said.

Minister of Gender, Labour and Social Development Betty Amongi Akena acknowledged the concerns, emphasizing the need to safeguard Universal Primary Education by eliminating extraneous fees.

“We need to ensure that children from low-income families can access quality education without financial barriers,” the minister said.

Experts warn that Uganda’s taxation woes will continue to stifle economic growth unless urgent reforms are implemented.

The Ugandan government has faced criticism for its handling of the economy, with high inflation, corruption, and infrastructure challenges plaguing the country.

As Uganda struggles to revitalize its economy, the business community is calling for meaningful change.

The Equal Opportunities Commission’s report has sparked renewed calls for tax reform, with many Ugandans hoping for a simpler, fairer taxation system.