URA takes tax drive to Arua timber dealers as government seeks to widen tax base

ARUA, Uganda — The Uganda Revenue Authority (URA) has stepped up efforts to widen Uganda’s tax base by engaging timber dealers in Arua City and urging them to meet their tax obligations.
Timber trading is among the largely informal sectors the tax body is targeting as it seeks to increase compliance and bring more businesses into the tax net.
The URA team met timber dealers at their premises in Arua City, where officials explained the importance of paying taxes and the rights and responsibilities of taxpayers.
Claire Sanyu, the Supervisor for Stakeholder Relations in Northern Uganda, told the traders that taxes are essential in enabling the government to finance public services.
She urged the timber dealers to comply with their tax obligations and contribute their share to the Consolidated Fund.
The engagement was also aimed at improving taxpayers’ understanding of the tax system and addressing concerns that may hinder compliance among businesses in the informal sector.
Abdul Majid Abubakar, chairman of the timber dealers, welcomed the URA initiative, saying taking tax education directly to traders had helped them better understand their rights and obligations.
He commended the authority for engaging the traders at their workplaces rather than relying solely on conventional tax enforcement measures.
URA has in recent years increased outreach to informal businesses as part of efforts to expand the number of taxpayers and boost domestic revenue collection.
The authority says improved tax compliance is crucial to enabling government to finance essential services and reduce reliance on external financing.