Uganda Revenue Authority has urged players in the goods transport sector to voluntarily comply with the required annual advanced income tax at the beginning of every financial year, other than waiting to do so at the time of renewing their operation licenses.
Paddy Ocheng, the manager service standards at URA, said voluntary compliance eliminates the risk of being slapped with tax evasion penalties.
Due to the informality and mobility associated with players in the transport sector, Uganda Revenue Authority thought it wise to have this section of the business community meet their income tax obligations at once in a given financial year.
Ocheng said much as many players received the new development in 2015 with mixed feelings, there has been enough sensitisation and the results are visible.
The mode of collecting this tax may sound easy given the fact that the catchment areas for defaulters are clear; but to Ocheng there are several impediments to successful administration.
Nonetheless, to avoid unnecessary interruptions during work, players in the transport sector have been urged to voluntarily pay this tax at the beginning of every financial year other than waiting during renewal of their operating license.
The introduction of advanced income tax is one of those measures that URA adopted to implement its mandate.
Advanced Income Tax is a tax withheld in respect of imported goods for commercial purposes and payable in advance instead of paying a lump sum at the end of year.