Entrepreneurs urged to prioritize tax compliance

KAMPALA, Uganda — Entrepreneurs have been advised to prioritize tax compliance, as failure to adhere to regulatory rules can lead to business failure.

Catherine Poran, chief executive of the Stanbic Business Incubator Limited, emphasized the importance of compliance during a panel discussion at Hotel Africana in Kampala. The event was organized by Enterprise Uganda as part of Global Entrepreneurship Week.

“The first reason why most Ugandan businesses fail is failure to adhere to compliance,” Poran said. “Most businesses are not compliant with the laws. When you are doing business, do it the right way. Compliance means that you are doing business the right way.”

Poran also highlighted the challenges of accessing markets and finance, advising entrepreneurs to explore alternative ways to raise capital and engage with potential markets.

Christopher Kakande, a partner at Kalinda & Associates, emphasized the need for entrepreneurs to register their businesses formally and remit taxes on time to avoid penalties.

“As business owners, to survive and thrive, you need to accept and pay the taxes,” Kakande said. “Many people look for ways to run away from taxes. That means you are in denial. You need to understand that government is a partner in your business.”

Kakande noted that taxes fund essential public services, such as roads and security, which benefit businesses. He advised entrepreneurs to accept and comply with tax regulations to avoid accumulating penalties.