Investors call for fairer tax system amid compliance crackdown

Participants at the conference argued that while some businesses are held to strict tax payment standards, others continue to operate without meeting their tax obligations.

A recent conference on tax incentives, tax policies, and tax administration for Ugandan investors highlighted significant challenges facing local entrepreneurs despite achieving a 14 percent return on investment.

The event brought to light growing concerns over the Uganda Revenue Authority's (URA) intensified efforts to enforce tax compliance, which some investors argue is creating an uneven playing field.

“We are seeing a situation where compliant businesses are penalised for following the rules, while others operate without paying their fair share,” said Jane Namutebi, a Kampala-based entrepreneur.

“This inconsistency not only undermines fair competition but also discourages those who are willing to invest in Uganda’s economy.”

Participants at the conference argued that while some businesses are held to strict tax payment standards, others continue to operate without meeting their tax obligations.

“The URA needs to enforce tax policies uniformly,” remarked David Okello, a financial consultant.

“We cannot build a thriving economy if the rules are not applied equally to all.”

The conference sought to address these concerns by exploring ways to improve tax administration, simplify tax policies, and offer incentives that encourage investment and economic growth.

Proposals included streamlining tax procedures to reduce administrative burdens and enhancing transparency in tax collection practices.

Investors and tax experts at the event called for a more efficient and transparent tax system, ensuring all businesses contribute fairly to the country’s revenue.

“If the government can simplify tax processes and make them more transparent, we believe more businesses will comply voluntarily,” said John Ochieng, a business owner from Gulu. “A fair tax system benefits everyone.”

The conference concluded with a call for the URA and government stakeholders to work collaboratively with the private sector in reforming Uganda's tax landscape.

"It is time for a tax system that promotes fairness, encourages compliance, and ultimately supports our nation’s economic growth," added Namutebi.