Speaking at the URA integrity forum Hotel Africana, Uganda Revenue Authority Commissioner General, John Rujoki Musinguzi, disclosed that the authority has dismissed 140 staff members in the past four years in efforts to eliminate corruption and ensure integrity in tax collection.
“These individuals have harmed URA’s reputation… they will be removed from the system.” Musinguzi reiterated, “We are aware that the corrupt fight is not an easy one, but it is one we cannot afford to lose. That’s why we have committed ourselves to integrity. Anyone who does not heed this call will face expulsion,” he added.
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Recognising the complex and ever-evolving means of corruption, he added that middlemen taking advantage of the system will not be tolerated any further. “They must either operate professionally or exit the field. This is part of our broader commitment to fighting corruption.”.
Musinguzi also pointed out that taxpayers themselves are involved in corruption, for it requires both taxpayers and URA staff to perpetuate the vice. To address this, the commissioner asserted that URA is enhancing its verification systems and eliminating non-credible entities, also known as container leaders, who have been facilitating tax fraud through misdeclaration and under-declaration.
Godfrey Katongole, the President of the Uganda National Traders Alliance, called for lowering taxes, calling it motivation for corruption: “Traders end up paying a lot of taxes, and this is tempting them to pay bribes whenever the opportunity arises.”.
Charles Ekweu, director general of the Federation of Uganda Customs Agents and Freight Forwarders, acknowledged that some of their members are involved in corruption, as pointed out by Musinguzi. Ekweu stated that the association is working on addressing the issue by developing a code of conduct for members.
Responding to Ekweu, Musinguzi shared that Uganda’s tax base has grown from 1.7 million to 4.4 million taxpayers in the last four years, well with a target of 10 million. He emphasized that tax rate reductions will only be considered once this goal is reached.
“When we get to that number, we will engage the ministry of finance to recommend lowering tax rates. But discussing tax rate changes now, with a small taxpayer base and minimal revenue collection, is risky,” he said.
“Importers, please stop corrupting our members. Do the right thing. And for URA staff, stop creating opportunities for corruption. Our agents are not decision-makers in the authority,” Musinguzi urged.
Musinguzi reiterated that the authority is committed to unrelentingly tackling the vice. He added that the authority established an independent department to hold staff accountable on integrity and moral issues and has made integrity one of its core values.
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