Uganda's Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has emphasized the need for the Uganda Revenue Authority (URA) to support small businesses in growing and transitioning into organized, productive enterprises. Speaking at the URA Engagement with Committees of Parliament, Musasizi highlighted the importance of formalizing the informal sector as a key pillar of Uganda's domestic revenue mobilization strategy.
Musasizi noted that the informal sector provides livelihoods to millions of people in Uganda, and the government's role is to progressively help businesses move from informality into organized, productive, and sustainable enterprises. He stressed that a small business that is supported to grow today becomes a stronger taxpayer tomorrow, employing more people, accessing finance, keeping better records, and contributing more to the economy.
The Minister called for a comprehensive approach that combines registration, taxpayer education, simplified compliance, technology, and appropriate enforcement. He cautioned URA against criminalizing small businesses and urged the authority to distinguish between deliberate tax evasion and a small business that requires assistance to understand and meet its obligations.
Musasizi emphasized that revenue administration must be anchored in fairness, professionalism, and integrity, noting that every interaction with a taxpayer is an opportunity to build confidence in URA and Government. He added that the URA must not view taxpayers as enemies, but rather as partners in the revenue collection process.
On modernization, Musasizi said technology must fundamentally change revenue administration, and that government systems across URA, NIRA, URSB, and Local Governments should no longer operate as isolated islands. He noted that these systems should be integrated to enable the identification of economic activity, improve taxpayer registration, verify declarations, and target compliance interventions more effectively.
Musasizi highlighted the importance of digitalization in reducing unnecessary physical interaction between taxpayers and tax officers, lowering compliance costs, improving traceability, and reducing opportunities for revenue leakage and corruption. He emphasized that the URA of the future must increasingly be data-driven, technology-enabled, and risk-based.
The Minister's remarks were made in the context of URA's efforts to modernize tax administration and improve revenue collection. He noted that systems such as EFRIS and Digital Tax Stamps are not ends in themselves but instruments for building a modern tax administration that is efficient, effective, and fair.
Key points
- The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has urged URA to support small businesses in growing and transitioning into organized, productive enterprises.
- Musasizi emphasized the need for a comprehensive approach that combines registration, taxpayer education, simplified compliance, technology, and appropriate enforcement.
- The Minister highlighted the importance of digitalization in modernizing tax administration and improving revenue collection.
