Uganda traders have urged the government to address inconsistencies in tax assessments, strengthen taxpayer education and reduce the cost of commercial borrowing, warning that expensive credit could push businesses towards informal lending.
The concerns were raised by a section of traders under the Uganda National Traders Alliance (UNATA), led by its president Godfrey Katongole, during a meeting with State Minister for Finance (General Duties) Cissy Mulondo at the Ministry of Finance, Planning and Economic Development.
The traders visited the ministry to present challenges affecting their businesses and propose measures to improve collaboration between the government and the private sector.
Among the issues raised were taxation, counterfeit products, trade order, tax assessments and access to affordable financing.
Katongole called for stronger taxpayer education and regular engagement between tax administrators and businesses to help traders understand their obligations, improve compliance and reduce disputes.
He also questioned inconsistencies in tax assessments, urging the government to ensure greater clarity, transparency and fairness in the administration of taxes.
“Better engagement between traders and tax authorities is critical to improving compliance and reducing disputes,” Katongole said.
The traders also raised concerns about the high cost of commercial borrowing, saying expensive formal credit is limiting businesses’ ability to access working capital and expand.
They warned that traders who cannot afford bank loans could increasingly turn to informal lenders, potentially exposing businesses to higher financial risks.
Mulondo assured the traders that the concerns raised would be considered and committed to further engagement with UNATA to explore practical solutions.
The meeting comes as the government seeks to broaden tax compliance while supporting private-sector activity and business growth.
Continued dialogue between government and traders could help address long-standing concerns around tax administration, access to finance and the wider trading environment, while enabling businesses to better understand and meet their tax obligations.
For traders, however, the effectiveness of the engagement will ultimately depend on whether the concerns raised translate into clearer tax assessments, more predictable enforcement and improved access to affordable credit.
