How youths may benefit from tax literacy according to finance authorities

The remarks were delivered yesterday during a session on youth and tax under the theme "Breaking the barriers to meaningful youth participation and inclusion in advocacy for fiscal justice". It was organised by SEATINI Uganda in partnership with the Institute for Social Transformation (IST), Oxfam and FEMNET with support from European Union.

The session was in commemoration of the Africa Youth Day and Month and was held at the Teenage Learning Centre in Kamwokya, Kampala.

According to Grace Namugambe, the program officer in charge of financing for development at SEATINI Uganda, fiscal justice cannot co-exist with tax ignorance. That this ignorance has fostered a tax environment where their needs are not met due to the void where they should be participating.

Compound economic transformation

“Youths are majority of the population and the next generation of taxpayers. However, they have not effectively participated in matter concerning taxes. The policies in place in regards taxes are not exactly responsive to their needs and this is partly because of lack of participation in these matters by youths,” she said.

Therefore, she called for active and effective youth participation in fiscal policy processes because they have significant and lasting impact on their nation's trajectory.

Accountability

According to Namugambe, there is need for effective youth participation in fiscal policy processes to ensure that policies are put in place that are responsive to their needs and that they can have a say on taxation.

Moureen Wagubi, the Executive Director for Institute for Social Transformation said there's a lack of accountability in leaders concerning taxes. The youth would be able to demand for this accountability with knowledge about business and finance and also learn how they contribute to the economy in order to ensure service delivery.

Public perception of taxes

She said there's also need to tackle the negative attittudes towards taxes among the youth.

Andrew Bukenya, a tax education officer with Uganda Revenue Authority (URA), said that of the 20 million Ugandans eligible to pay taxes, only 1.2 million comply.

He urged the youth to use the opportunity of the self-assessment tax regime Uganda runs instead of avoiding it.

Self-assessment

That in self assessment, "If you have a small business, our regime is one that allows you to self-assess and know the amount to pay in taxes." However the public fails to do this and by the time the tax body teams come, the tax sum is high. He advised Ugandans "don’t wait for URA but do your own self-assessment and you will realise that the amount of tax you are supposed to pay is very little."

Tax identity

He also mentioned the importance of having a Tax Identification Number (TIN). That it ha purposes beyond paying taxes.

For example, "If you have a small business and you want to supply products to a supermarket, if you want to purchase a car, change its log book or buy land, to get a tender or contract to supply to government," you are required to have a TIN for all these actions.

Bukenya revealed that URA has launched a campaign to push for taxation literacy alongside expansion of the tax registry.