President yoweri Museveni has directed the Prime Minister, Dr. Ruhakana Rugunda to harmonize the taxation of informal sector directing that those involved should pay tax once and more multiple taxation.
In a letter dated July 22, 2017, the president says it is unfair for multiple taxation and therefore, single taxation should apply across the board.
“I am writing through you, to all government agencies on the issue of over taxing our informal business groups (market vendors, gonja sellers, muchomo sellers, Maize sellers etc). It is correct that these operators buy annual license of, may be Shs50, 000 that should be all. Nobody should again charge them daily fees of, for instance, Shs1; 000” reads the letter to Dr. Rugunda.
Mr Museven said that as far taxis are concerned, it should again be one fee for an annual license.
“Once you have that license, you should operate without hindrance on the route for which you were licensed for the whole year. There should be no fees for Kampala, and fees for up country vendors.”
The President further emphasized that it should be one consolidated fee and if the owner of the taxi business makes profit out of the income, then the profit could be taxed and the employees should also pay income tax. “However, daily taxation of operations must stop completely”
He added “The excessive direct taxes for these or any other groups are not correct. Once these groups get some income, they will start spending that is how the government will get taxes through consumption taxes”
Mr. Museveni’s directive comes at the time when taxi operators have just petitioned Parliament through Kira Municipality legislator, Ibrahim Semujju Nganda challenging the issue of several taxation.
