The private sector has spoken against the proposed tax reforms, warning Parliament that some of the measures risk constraining investment, deepening informality, and undermining post-pandemic economic recovery.
Appearing before Parliament’s Committee on Finance, Planning and Economic Development yesterday, the Uganda Manufacturers Association (UMA), led by Chairman Richard Sekalala, urged MPS to amend Section 15(1) of the Tax Appeals Tribunal Act.
The provision requires taxpayers to pay 30 percent of the disputed tax assessment before appealing.
The Association says the requirement, as it stands now, is punitive and exclusionary.
The Tax Appeals Tribunal Act was designed to streamline tax dispute resolution and protect government revenues from frivolous litigation.
However, UMA argues that the 30 percent prepayment requirement effectively locks out many businesses, especially small and medium enterprises, from exercising their right to challenge contested assessments.
Kenya and Rwanda have, in recent years, adjusted similar requirements to lower thresholds or allow flexible arrangements, in a bid to balance revenue protection with taxpayer rights. Uganda Revenue Authority (URA) data reveal that tax disputes have been rising steadily as compliance enforcement tightens.
By URN
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