Electronic tax

URA plots to tax online businesses

The Uganda Revenue Authority (URA) plans to tax businesses operating online without a physical location in their plan to meet their revenue targets.

Speaking on the sidelines of the 6th Annual Appreciation Bank Conference held at the Mestil Hotel in Kampala, URA Commissioner-General John Musinguzi said the authority had discovered many businesses could not operate in stores due to the Covid-19 outbreak.

“According to our research, companies have moved to operate online, we need a new law to help us in this new area to be able to achieve our goals,” he said. .

Musinguzi said that to perform well, the authority needs to improve its contribution to revenue and they have come up with a medium term strategy to help increase the amount of revenue.

“Today we appreciate banks for innovation and technology on how to move forward. Banks helped that if you open an account you must open a tax identification number (TIN) which allows them to meet their tax obligations,” he added.

In Uganda, e-commerce is expected to grow annually at the rate of 17.6% by 2021, resulting in an expected market volume of $421 million by 2025 and user penetration is expected to reach 29, 1% by 2025.

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