SEATINI Trains TJAU Members on Tax Expenditures and Taxation of the Digital Economy
SEATINI-Uganda with financial support from USAID-DRM4D is organized a two-day training on Tax Expenditures and Taxation of the Digital Economy. The training that was held on Tuesday 26th and 27th July 2022 brought together Tax Justice Alliance Uganda members representing various CSOs. The training is part of a series of targeted trainings on Domestic Revenue Mobilization and related issues
In his welcome remarks Mr. James Muhindo from USAID noted that this training is critical in terms of equipping participants with the much-needed knowledge and skills to speak as subject matter experts and be able to effectively advocate for and influence policies.
During the training Mr. Tony Kalungi from Uganda Revenue Authority noted that the digital economy is hard to explain but it entails areas of the economy that utilize internet technologies. Due to the abilities brought by the internet therefore businesses in the digital economy operate using various business models. This makes taxing this economy complex.
Ms. Lin Ankunda Nuwagaba from URA also noted that taxing the digital economy is essential because many digital businesses have a difference in their physical location from the place of tax registration. She noted that some businesses are tax registered in tax havens and are not paying their fair share of taxes. Therefore, they can only be taxed through mechanisms of taxing the digital economy.
However, taxing the digital economy requires international coordination for proper implementation. The Organisation for Economic Co-operation and Development (OECD) in 2021 developed a two-pillar plan to reform international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate. This includes addressing the tax challenges raised by digitalization in its member countries which Uganda is among.
Ms. Regina Navuga Tax Expert at SEATINI Uganda noted that the process to develop an effective tax regime is lengthy urged development partners to continue supporting programs.
