Mubende Businesses Struggle Under Heavy Tax Burden

Business
Mubende Businesses Struggle Under Heavy Tax Burden
kadaga with members of the business community

Mubende's business community is reeling from a wave of closures, with local leaders and entrepreneurs pointing the finger at high taxes levied by the Uganda Revenue Authority (URA). This surge in taxes has caused over 20 Kombucha factories alone to shut their doors, leading to unemployment and a decline in foreign investment.

Business owners like Johnathan Rwakayikara, director of Kazero Kombucha, and Ronald Africa, General Manager of the same company, lament that despite using locally sourced raw materials, URA taxes feel punitive. "It's like they want us Ugandans to leave business to foreigners," Africa stated.

While acknowledging the importance of tax contributions, both businessmen and the Mubende District Chairperson, Michael Ntambi, highlight a lack of clear communication from URA regarding new taxes. Ntambi emphasized the negative impact on the district, including the closure of hardware stores and the potential rise in crime due to unemployed youth.

Deputy Prime Minister Rebecca Kadaaga, upon hearing these concerns during a visit to Mubende, expressed shock and pledged action. She immediately contacted Finance Minister Matia Kassaijja and plans to bring the issue before the cabinet on April 8th.

This development underscores the urgent need for a balanced approach to taxation in Mubende. While tax revenue is crucial for government operations, fostering a thriving business environment is equally important. Finding a solution that promotes growth alongside responsible tax collection will be key to Mubende's future prosperity.

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