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URA refutes claims of taxing Kabaka Gifts

Man Jose Kayima 

The Commissioner General of the Uganda Revenue Authority, John Musinguzi, has refuted claims suggesting that URA intended to impose taxes on gifts presented to the Kabaka of Buganda, locally known as Oluwalo.

Musinguzi clarified the URA’s taxation scope, emphasizing that the authority solely focuses on employment income, business income, and property tax.

“URA only taxes employment income, business income, and property tax and not royal gifts not only of Buganda but any other kingdom,” Rujoki said. asserted Musinguzi

During an indoor meeting held between representatives from the Kingdom of Buganda, led by Prime Minister Charles Peter Mayiga, and a delegation from URA, Musinguzi reiterated the importance of enhancing tax compliance in Uganda.

“Buganda has a central geography that hosts businesses which contribute to more than 80 percent of the revenue collected by URA.” – added Musinguzi

He expressed concern over the low tax collection rate, citing a mere 14 percent of the Gross Domestic Product (GDP) ratio being collected, indicating a significant shortfall.

Grateful for Buganda’s role in revenue generation, Musinguzi acknowledged the substantial contribution from businesses within the kingdom, which accounts for over 80 percent of the revenue collected by URA.

Buganda kingdom’s Prime Minister Charles Peter Mayiga echoed the kingdom’s commitment to collaborating with URA to promote a positive tax culture among citizens.

“The kingdom of Buganda is ready to partner with URA in sensitizing the citizenry towards a positive attitude on tax collection.” – noted Mayiga.

Mayiga emphasized the need to address tax evasion and pledged the kingdom’s willingness to support URA’s efforts in enhancing tax compliance.

Mayiga cautioned against citizens demanding improved service delivery without addressing tax collection issues, advocating for a human-centered approach to tax collection, and urging for a broadened tax base while ensuring equitable service delivery.

“Tax collection should be given a human face to broaden the tax base and ensure equitable service delivery,” Mayiga noted.

The partnership between the Kingdom of Buganda and URA signifies a step towards fostering greater transparency and accountability in tax administration, ultimately contributing to Uganda’s socio-economic development.

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