URA plots to tax online businesses

Uganda Revenue Authority (URA) is planning to tax businesses operating online without a physical location in their plan to hit their revenue targets.

Speaking on the sidelines after the 6th Annual Appreciation Bank’s Conference which took place at Mestil Hotel in Kampala, URA Commissioner General John Musinguzi said that the authority discovered that many businesses could not operate in shops due to the outbreak of Covid-19.

“According to our research, businesses shifted to operating online, we need a new law to help us in this new area to be able to hit our targets,” he said.

Musinguzi said that to perform well, the authority must improve their revenue contribution and they have come up with a medium-term strategy to help in raising the amount of revenue.

“Today, we have been appreciating banks for the innovation and the technology on how to move forward. Banks have helped that if you open an account, you must open up a Tax Identification Number (TIN) which enable them to meet their tax obligations,” he added.

In Uganda, e-commerce is projected to grow annually at the rate of 17.6 percent by 2021 resulting in a projected market volume of US$ 421 million by 2025 and user penetration is expected to hit 29.1 percent by 2025.

Musinguzi asked banks to continue working together on tracking down illicit transactions and keep sharing all the vital information regarding illicit accounts.