Dear Editor,
The Uganda Revenue Authority (URA), the Ministry of Finance, Planning and Economic Development (MoFPED), and the Office of the Prime Minister (OPM) — needs to examine if Uganda is serious about increasing domestic revenue.
Anyone who operates a private business in different parts of Uganda will understand the challenges I am raising.
The Local Government officials have become a major source of frustration for many small business owners, particularly when it comes to trading licenses and other local fees.
Recently, I voluntarily went to a Division office to pay my annual trading license. I was asked about the nature of my business, which I explained to the officials. However, the amount I was initially told to pay appeared, in my view, to be excessive compared with the nature and size of my business.
After I questioned the amount and considered leaving without paying, I was offered a lower figure. This made me question how consistently trading license fees are being assessed and collected.
I have encountered a similar situation when paying for trading licenses in Kampala. It sometimes feels as though traders are left negotiating with officials over how much they should pay instead of being given a clear, transparent and standard assessment.
When small traders become frustrated by such experiences, some may choose not to pay their licenses at all. Yet, field officers continue moving from business to business collecting money, and some traders, allege that they are asked for un-official payments, ranging from Shs.20,000 to Shs.50,000, depending on the size of the business.
If Uganda wants to become financially self-reliant and expand its domestic revenue base, these concerns must be addressed. The Government should consider making trading license assessments more transparent, publishing clear fee schedules, strengthening accountability within Local Governments and providing traders with simple channels to report suspected extortion or bribery.
My question is simple: Can Uganda build a strong domestic revenue base if small businesses continue to face allegations of corruption and arbitrary charges at the Local Government level? This is an issue that deserves serious investigation.
Godfrey Lukwago
Kamwokya
