How URA tax clinics are reshaping Uganda’s manufacturing sector
The tax clinic comes at a time when Uganda is seeking to expand its manufacturing base as a driver of economic growth, exports, and job creation. Strengthening compliance while ensuring that incentives are well understood and effectively utilized is seen as critical to achieving that goal.
Manufacturers and tax authorities are stepping up collaboration in a renewed push to strengthen compliance, improve understanding of tax incentives, and support Uganda’s industrial growth agenda.
At a joint tax clinic held in Kampala on April 30, the Uganda Revenue Authority and the Uganda Manufacturers Association brought together industry players for a detailed sensitization on domestic taxes, incentives, and customs procedures—signaling a shift toward a more cooperative relationship between government and the private sector.
Officials from URA emphasized the importance of manufacturers taking advantage of existing tax relief measures, particularly the ongoing tax waiver. Isaac Mwesigwa from the Large Taxpayers Office urged businesses to actively utilize the waiver while it remains available, noting that such incentives are designed to ease financial pressure and encourage compliance.
He also reiterated key obligations, reminding manufacturers that Pay As You Earn (PAYE) is deducted at source and must be remitted monthly, while Value Added Tax (VAT) applies to the supply of goods and services within Uganda.
The engagement also focused on improving communication between taxpayers and the authority. Hafsa Seguya Nabachwa, Supervisor for Regional Tax Outreach at URA, encouraged manufacturers to make full use of their assigned Customer Relationship Managers as the first point of contact for inquiries and dispute resolution. She further clarified procedures around tax waivers and the destruction of goods, an area that often raises compliance concerns.
From a customs perspective, URA highlighted the strategic role of duty remission schemes in supporting industrialization. Irene Ninsiima, Supervisor Customs, explained that duty remission is administered under the East African Community Customs Management Act, 2004, which governs trade and customs operations across the East African Community. She stressed the need for accountability among beneficiaries of such incentives, cautioning that firms must properly account for any relief granted.
Manufacturers were also reminded of their rights within the tax system, including the ability to object to tax assessments within 45 days of receiving a decision—an important safeguard in ensuring fairness and transparency.
Beyond compliance, the clinic reflected a broader evolution in the relationship between URA and the manufacturing sector. Robert Kalumba acknowledged manufacturers as one of the country’s largest contributors to domestic revenue and emphasized URA’s commitment to listening to industry concerns.
On the private sector side, Ezra Muhumuza Rubanda noted that what was once a strained relationship has transformed into a more constructive partnership built on regular dialogue and mutual understanding. He outlined structured engagement platforms now in place, including tax clinics, weekly economic sub-committee meetings involving agencies such as the Ministry of Finance and environmental regulators, quarterly sector dialogues, and board-level interactions.
“These engagements have created common understanding around tax computations and procedures, reducing disputes and improving predictability for businesses,” he said.
However, Dr. Rubanda cautioned manufacturers against outdated practices of manipulating tax obligations, urging firms to adapt to a more transparent and rules-based environment. He also called on business leaders to take a more active role in understanding tax policy, rather than leaving such matters solely to accountants.
“Policy issues, especially tax matters, should not be left to accountants alone. Decision-makers must take interest in understanding the tax regime both locally and across the region,” he said.
The tax clinic comes at a time when Uganda is seeking to expand its manufacturing base as a driver of economic growth, exports, and job creation. Strengthening compliance while ensuring that incentives are well understood and effectively utilized is seen as critical to achieving that goal.
As engagements between URA and manufacturers deepen, both sides appear aligned on a common objective: building a tax system that supports business growth while safeguarding domestic revenue.
