This financial year, Uganda Revenue Authority (URA) is going after the informal sector by formalizing registration and encouraging these business owners to pay taxes and contribute towards national development.
‘With effect from October 1, 2015 a countrywide TIN Bonanza kicked off to popularize and facilitate voluntary registration for tins flavored with several prizes and gifts to win as we encourage compliance of this sector’ Henry Saka, the Commissioner Domestic Taxes told East African Business Week.
Segments under scrutiny include people involved in transport operations (boda boda, taxi commuters, special hires), hair salons, garages, restaurants, bars clinics, drug shops, shoe repairers and the like.
Announcing this massive drive last week, Saka said in Uganda, the informal sector is estimated to contribute 52.4% of GDP and employs about 70 – 80 % of the labour force according to findings by the Uganda Bureau of Statistics during 2014.
To bring them on board, the government announced several policy and revenue enhancement measures to tap into the informal sector.
The key driver is mobilizing them for registration for a Tax Identification Number (TIN).
Saka said URA has organized a number of teams to camp in trading centres countrywide to further facilitate people go through the process to register for a TIN. To flavour the exercise and raise some excitement, a character ‘TIN Man’ has been created to put a human face to the registration process. Instant gifts are also on offer for those who go through the entire registration process.
TIN man will be supported by mascot in order to create the frenzy and interest in the whole registration process and tax payment depending on the different tax bracket.
URA informal sector penetration exercise targets 200,000 small businesses adding to the present 785,000 TIN holders. Commenting on the benefits and consequences of TIN incompliance Saka said it will be a breach of the law, he who does not hold a tin will not transact any business with government and stakeholders having TINS, Businesses who file claims of VAT to URA will not allow non-TINS holders to work with them, transfer of land titles and vehicles will not be effective without TIN.
The commissioner explained further that alongside the TIN Bonanza will be a “30-Day Thank you” period during which URA will visit 200 top taxpayers to appreciate them for the exemplary contribution towards national development. This is part of this year’s appreciation and acknowledgement of taxpayers running on the theme ‘Lets Grow Together”.
“All these activities will culminate in a grand party dubbed Omugano gwa URA (the URA fiesta) it will be held at the Mandela National Stadium on October 25, 2015. The ticket to the fete at which several artists will perform will be a TIN.
