Uganda Revenue Authority (URA) has highlighted the importance of Small and Medium Enterprises (SMEs) in transforming Uganda’s economy.
During the official opening of the 2019 Taxpayers Appreciation Week at Kololo Airstrip on Wednesday, Doris Akol, the URA Commissioner General revealed that SMEs have in the past years contributed Shs9 trillion in tax revenue.
URA figures indicate that domestic revenue contribution has been recorded at Shs7.57 trillion, Shs9.08 trillion and Shs9.74 trillion in 2016/17, 2017/18 and 2018/19 respectively.
SMEs’ tax contribution to the domestic revenue has been remarkable at Shs2.55 trillion, Shs3.03 trillion and Shs3.54 trillion in 2016/17, 2017/18 and 2018/19 respectively.
Akol said that recent studies show that SMEs contribute over 25% of Uganda’s total Gross Domestic Product (GDP) and employ about 45% of the labour force.
“SMEs are important for their contribution to employment, economic growth, innovations and the diversity of competition they bring to the markets. SMEs guarantee inclusiveness and sustainable economic growth,” Akol said.
Speaking at the same event, the Minister of Trade, Industry and Cooperatives, Amelia Kyambadde said that as government, they have tried to link SMEs to regional markets.
She advised rural communities to set up one stop centres.
“Set up one stop centres at URA to facilitate cross border trading,” Kyambadde said.
She advised URA to address tax concerns especially on presumptive tax.
“Give them time to stabilize, then you tax (them). Another area of concern is presumptive tax, it has really drained my traders,” she said.
However, Akol said that there are laws which technically cater for those concerns.
She explained that under the Presumptive tax regime, tax is imposed on the annual turnover.
