TAX CRACKDOWN! Tayebwa Warns Bizmen Over Tax Evasion, Calls for Integrity

KAMPALA — Deputy Speaker of Parliament Thomas Tayebwa has challenged Uganda’s business community to embrace tax compliance, transparency and ethical conduct, saying the country’s economic transformation requires a strong and responsible private sector.

Tayebwa made the remarks on Wednesday, October 7^th, while speaking at the inaugural National Prayer Breakfast Business Forum held at Parliament, bringing together MPs and business leaders to discuss the contribution of the private sector to national development.

The forum’s keynote address was delivered by Emmanuel Katongole, Executive Chairman of Quality Chemicals Industries Uganda Limited, and attracted participants from Rwanda, Burundi, Nigeria, Tanzania, Germany, India, Cameroon and other countries.

Tayebwa said Uganda’s focus should be on improving tax compliance and widening the tax base instead of continually introducing new taxes.

He argued that increased compliance would give government more resources to invest in infrastructure and essential public services.

“How do you expect us to build more roads, generate more power and provide you with water when we are still hovering around the tax-to-GDP ratio of 13–14%?” Tayebwa asked.

He said Uganda could raise its tax-to-GDP ratio to about 21% if more individuals and businesses paid their fair share of taxes.

Tayebwa also said government and Parliament have a responsibility to create a fair and predictable business environment, warning that selective tax exemptions and preferential arrangements can distort competition.

He invited members of the business community to engage Parliament directly on whether existing policies and laws are enabling enterprises to expand, create jobs and generate wealth.

“The government does not create wealth. The government creates conditions which will enable you, the business community, to create wealth,” he said.

BUSINESS INTEGRITY

Tayebwa also challenged the private sector to embrace greater integrity, arguing that ethical conduct should not be demanded only from public officials.

He said employees who steal from their employers should face firm sanctions, just as public officials who misuse public resources are expected to be held accountable.

The Deputy Speaker said businesses should therefore build cultures of accountability and responsible management.

‘BUSINESSES MUST CREATE IMPACT’

Tayebwa further challenged entrepreneurs to look beyond profits and consider the broader impact of their enterprises on society.

He said businesses contribute to communities through employment, supply chains, taxes and other economic activities.

“If the major aim of your business is to make money, then you’re living on borrowed time,” he said.

He urged entrepreneurs to identify the problems their businesses are solving and measure their success partly by the impact they create.

MENTOR YOUNG ENTREPRENEURS

Tayebwa also called on established business leaders to mentor young Ugandans and aspiring entrepreneurs, saying experienced businesspeople have a responsibility to pass on their knowledge.

“Mentor young people. Mentor other business people. One candle can light a thousand candles,” Tayebwa said.

He argued that the growth of individual enterprises contributes to wider economic prosperity by creating employment and increasing people’s purchasing power.

“If each one of us here becomes rich, then we shall all become richer,” he said.

Tayebwa said the mentorship drive should also extend to Members of Parliament interested in building sustainable businesses.

He argued that such mentorship could help MPs move away from what he described as a mindset of “political business,” where politicians continuously spend money to win voters, towards establishing sustainable enterprises capable of generating wealth.

He added that MPs who engage in legitimate business would gain a better understanding of the challenges entrepreneurs face when starting and expanding enterprises.

Various speakers at the forum said the initiative would strengthen cooperation and dialogue between Parliament and Uganda’s private sector.