BUSINESS FORUM UGANDA Energy Centre, Room 12-12, Market Street Kampala Tel.0772502 757 Our Ref: VOUT Ref sn Date,,..15th April, 2024 Attn. Hon Min. Matia Kasaija, MINISTRY OF FINANCE PLANNING AND DEVELOPMENT KAMPALA Dear Hon. Minister, RE: CHALLENGES FACING THE BUSINESS COMMUNITY IN UGANDA AND OUR RECOMMENDATIONS Briefly as requested, we are listing the burning issues that are affecting the business community as being researched and reported by our members of the Business Forum. RECOMMENDATION:- 1. VAT limited line of over 150 millions and above. We are requesting to be shifted to one billion total sale collection since the dynamics of trade have changed to uncertainty. Plus the shillings inflation. 2. EFRIS system that is not clearly understood by the business community and rampant penalties put on the business people. We are requesting that the system remains in factories and to the big business community that works in green line of importation. 3. The instability of electricity in the arcades, lacking of technical knowledge of the system, addition of expenditures of hire a technical person, the modality of down town business, all those are not friendly to our members to use this system. 4. Mult taxation on our business thus made many people quit business. We are requesting a big dialogue with business community since the members of parliament and finance just focus on tax corrections and for their salary, allowances increments plus targets of full filling the expected budgets. 5. Delays in clearing goods from the customs. We are requesting to remove bad policies in clearing systems and too many so called check points and systems. 6. We request to remove the high rated kilogram valuation systems on goods that are not purchased in weight.10. UNBS to focus on the goods that are manufactured in the country because the imported ones are already inspected by the point of origin. OR to change the trade agreements that any country which export the substandard goods to another country, will be responsible for the loss through their embassy or commercial attaches but not the traders because we don't have that knowledge. To set and put taxes on the system to remove uncertainty of taxes and to make it easy for the importers to clear the goods in the very shortest time because most traders are using bank money which has to go with time and certainly. We are requesting you to get only one institution to be the collecting body of all revenue in the country. So that this can help the government to know how many taxes a person pays for every item or sector this will reduce mult taxation as it is on houses like:- I. VAT paid on power supply Il. VAT paid on water supply Ill. Rental Income Tax IV. Property ground rent to land lords V. Property rent to local governments of the government of Uganda which has already taken the first three taxes. And as well the government is very much aware that this rental business is headache that’s why it sold all its own houses because of more Payments of the tenants. Others will be discussed as we go on with dialogue to improve the order of trade in Uganda for the good of business community and our country. We also request for the tax reduction at least 20% since URA is not following our receipts but following the tax values in their own system. And lastly, we welcome the Chinese investors/manufacturers to come and work in industrial parks with tax exemption. But once they attempt to bring the finished goods in market, they should first pay to URA so that we get competitive market with the importers. Thanks and wishing you a very good service to our country. Regards, Augustine Lwanga Busiiwa For: cc Ce cc cc Cc cc BFAU To KACITA To FUTA To UATEA To NEW GENERATION To KATA To KAFFO