URA Engages Busia Youth on Tax Compliance Amid Cross-Border Trade Challenges

In a bid to improve tax compliance among young entrepreneurs in Busia district, the Uganda Revenue Authority (URA) has embarked on an outreach campaign focused on educating youth involved in cross-border trade about the legalities of conducting business. The week-long conference, held at Syamalede Bible College in Lumino sub-county, attracted participants from various trades, including bodaboda riders, salon operators, mechanics, and traders.

Organized by the Samia-Bugwe archdeaconries, the event aimed to equip young entrepreneurs with the necessary knowledge and skills to navigate the complexities of tax compliance in a border region known for its vibrant, yet often informal, trade activities.

Emphasizing Tax Compliance

During the conference, Samuel Kanakulya from URA's tax education department took the lead in addressing key tax compliance issues. He highlighted the importance of obtaining a Tax Identification Number (TIN) and registering businesses as required by law. Kanakulya also stressed the significance of proper record-keeping and understanding the presumptive tax schedule, which is designed to simplify tax obligations for small businesses.

"Compliance with tax laws not only protects your business but also ensures you contribute to the development of our country," Kanakulya emphasized. He warned participants against engaging in smuggling, outlining the risks involved, including financial losses and the inevitable consequences of law enforcement actions.

Concerns from the Youth

However, some participants expressed concerns about the challenges they face in adhering to tax regulations. Bernard Okudoi, a mechanic who openly admitted to engaging in smuggling, questioned the rationale behind paying higher prices for motorcycles in Uganda when they are cheaper across the border in Kenya. He also pointed out the inconsistencies in motorcycle registration requirements between the two countries.

Other youths echoed Okudoi's concerns, accusing tax officials of selective law enforcement, corruption, and what they described as "double taxation" from various government entities.

Addressing the Challenges

In response, Kanakulya explained that government policies are designed to protect local manufacturers and clarified the differences between various fees, such as local council charges, license fees, and domestic taxes. He urged the participants to report any instances of corruption, reiterating URA’s commitment to a zero-tolerance policy.

"The government is not here to stifle your businesses but to ensure a fair playing field for everyone. We are open to feedback and are here to help you navigate these challenges," Kanakulya reassured the audience.

By the end of the event, many expressed a renewed commitment to operating within the legal framework and contributing to their community's development.