The Uganda Revenue Authority (URA) located on 5th Street Nakawa Industrial Area NIP building Kampala is an independent institution responsible for the following functions;
- Effect all Central Government taxations laws;
- Promote equity and fairness in the tax system;
- Provide a databank for primary data and information for the tax policy function of the Ministry of Finance;
- Carry out proactive research to evaluate different fiscal policy options available and advise government on the preferred course of action;
- Educate the tax-paying public, researchers and future taxpayers (students) so that they are fully aware of their rights and obligations under the existing tax regime and are kept up to date regarding any changes to that regime;
- Work in conjunction with the government bodies such as the Ministry of Trade and Industry and the Bureau of Standards in monitoring the quality and nature of goods crossing the borders of Uganda; and
- Provide Uganda with the necessary representation in regional and international fora where such fora have implications for tax policy and administration.
Ministry of Finance, Planning and Economic Development (MFPED)
The MFPED makes proposals both for expenditure and for methods of funding that expenditure. They also set targets for revenue collection by URA. These targets are based on assumptions about the economy and the need to raise revenue for funding government programmes. Assumptions include exchange rates, real GDP growth, nominal GDP growth, inflation, and volume growth for dry and wet imports.
The Tax Policy Department (TPD) of the Ministry of Finance, Planning and Economic Development monitors the attainment of the targets in order to avoid shortfalls that could disrupt expenditure plans and programmes.
According to Article 152 of the Constitution, no tax shall be imposed except under the authority of an Act of Parliament. Any person (or institution) legally empowered to impose or waive a tax is required to report periodically to Parliament. This makes Parliament the supreme authority in taxation policy. The tax laws enacted by Parliament are handed down to Uganda Revenue Authority for implementation and enforcement.
The business organizations
The business organizations have a big stake in tax policy formulation and implementation. They enter into negotiations with the government through their umbrella organizations before the national budget is read. The umbrella organizations include Uganda Manufacturers Association (UMA), Uganda Export Promotion Board (UEPB) and Uganda Investment Authority (UIA) among others.