The Uganda Manufacturers Association (UMA) has requested that the Ministry of Finance, Planning and Economic Development (MoFPED) and Uganda Revenue Authority (URA) jointly assess the economic impact of investor exemptions.
At a recent policy meeting during the 31st UMA International Trade Fair, UMA Board member Richard Mubiru stated that exemptions are limiting revenue collection and hindering the goal of ten-fold GDP growth.
He emphasized the need to collaborate with URA, guided by the Ministry of Finance, to study exemptions, noting that these exemptions constrain taxation, industrial output, and VAT, which are critical for achieving ten-fold growth.
The manufacturers also advocated for tax policy reforms, specifically regarding the Tax Appeals Tribunal (TAT) requirement for taxpayers to deposit 30% of disputed tax before filing a case. They argued this ties up business capital and suggested allowing bank guarantees and insurance bonds as alternatives.
Godfrey Byamukama, Assistant Commissioner of Economic Development Policy and Research at MoFPED, clarified that policy amendments are made by Parliament and Cabinet, and requested UMA to submit detailed tax policy proposals for consideration.
“There are issues beyond URA. The law gives them the mandate mobilize and collect revenue. The people who can change the law are in the Cabinet, Parliament and Ministries,” he said.
