Hundreds of shops in Kampala face closure if they don’t pay 45 billion shillings to Uganda Revenue Authority (URA) as income tax they are obliged to pay to Uganda government.

URA is demanding presumptive tax from all small, medium and big enterprises in Kampala in its bid to expand tax base in president Museveni’s government.

Presumptive tax is part of income tax that citizens are obliged to remit to URA every year. However, the traders association KACITA has vowed to take URA by horns. Income tax is a tax a person pays on their taxable income in a given year. According to URA, the taxable income on which someone pays income tax is called chargeable income.

URA commissioner, Hellen Kagina says presumptive tax is not a new tax in Uganda. It has lived over the years. Business owners, divisions, companies and partnerships have an obligation to honour this tax.

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