Timely Tax Payments Could Generate UGX 2 Trillion, URA Chief Says

The Commissioner General of the Uganda Revenue Authority (URA), John R. Musinguzi, recently appeared on the Kalisoliso breakfast show to clarify the details of the ongoing tax waiver program. He encouraged taxpayers to take advantage of the initiative before the December 31, 2024, deadline. Under this program, taxpayers are required to pay only the principal tax, which excludes any interest and penalties accrued.

Musinguzi emphasized the significance of timely tax payments, stating that if taxpayers fulfill their obligations, the URA could generate approximately UGX 2 trillion out of the projected UGX 4 trillion demand. He noted that the current tax system could be improved, leading to greater financial stability for all stakeholders. “Oftentimes, it’s the penalties that drive taxes up significantly,” he remarked. He explained that by focusing on principal payments, the burden on taxpayers could be alleviated, promoting a fairer tax environment.

During the discussion, Musinguzi also addressed concerns regarding the high taxes associated with imported vehicles, particularly the environmental tax. He explained that vehicles over nine years old are subject to an environmental tax that can exceed 50%. This tax is designed to encourage the importation of newer, more environmentally friendly vehicles. “Importers should carefully consider these factors when planning their purchases to avoid unexpected costs,” he advised. The initiative aims to promote a cleaner and more sustainable future through responsible vehicle importation.