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UGANDA: 80% of economy informal, does not pay taxes

Rugasira 2

Rugasira said the entrepreneurial spirit is present among many Ugandans, but is undermined by many unnecessary obstacles, including the fact that it takes up to 27 days to register a business in Uganda. Rugasira remarked that while Uganda was voted one of the most entrepreneurial countries in the world, the absence of a conducive environment to make business thrive and competitive was a major drawback. The assurance from an official of the Uganda Registrations Services Bureau (URSB) that they are able to register a business in under 48 hours was just laughed off.

Rugasira told an attentive audience that up to 400,000 young people enter the job market annually, but there are only 9,000 formal job places available.

“Difficultly in registering businesses causes informality to thrive. Let’s not look at the informal sector as a problem, but look for and create opportunities to turn the players there to formal business,” he said.

URA Commissioner General Doris Akol suggested that more Ugandans need to pay their taxes if Uganda’s tax to Gross Domestic Product (GDP) ratio is to rise to the level of her regional counterparts. At less than 13% of GDP, Uganda’s tax to GDP ratio is one of the lowest yet its GDP has been growing faster than her regional counterparts.  “We need to increase the tax base,” she explained.



Informal Sector: Presentation by URA CG Akol by The Independent Magazine

One comment

  1. edith Nalyanti Kakuba

    There should be a deliberate effort and very strategic at that to motivate the informal sector into a structured and regulated mode.It can be in a phased manner.

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