EOC Urges Tax Reforms to Protect Business Continuity

The Equal Opportunities Commission (EOC) has called for comprehensive tax reforms to address the challenges facing businesses, particularly micro, small, and medium enterprises (MSMEs).

The commission warns that the current tax regime is threatening business continuity, hindering economic growth, and stalling job creation.

One of the key concerns raised by the EOC is the inequitable distribution of trade license fees.

It recommends a progressive system where fees are scaled according to the size of the business, ensuring that larger enterprises contribute more while smaller businesses receive much-needed relief.

The commission also emphasised the need for tax policies that address poverty and inequality, suggesting reforms that prioritise the needs of the most vulnerable citizens, regardless of gender.

To improve tax compliance and reduce burdens on businesses, the EOC advocates for increased awareness campaigns to educate business owners about their tax obligations, available support services, and the consequences of non-compliance.

The commission believes that clear and accessible information can encourage voluntary compliance and reduce the need for enforcement measures.

In a bid to protect low-income households, the EOC has proposed exempting essential goods, such as salt, kerosene, and candles, from indirect taxes.

This measure aims to alleviate the financial strain on struggling households and reduce the cost of living for the most vulnerable.

The commission also calls for stricter criteria for granting tax incentives and exemptions, suggesting these be targeted at businesses with a demonstrable positive impact on the economy and population.

Regular monitoring and evaluation of such incentives are essential to ensure accountability and effectiveness.

By implementing these recommendations, the government can foster a fairer and more supportive tax environment, helping businesses thrive and improving the livelihoods of Ugandans.