Budadiri West Hon. Nathan Nandala Mafabi has emphasized the need for a predictable tax policy in Uganda, citing the current uncertainty as a major reason for strikes and economic instability.
Speaking during the Thursday plenary, Mafabi stated that taxes must be predictable, allowing businesses and individuals to plan for the future.
He noted that around the world, changes to tax policies typically take five years to implement, but in Uganda, laws are often passed hastily, creating inefficiencies.
“The lack of a tax policy means that laws can be passed in a matter of minutes, without proper consideration for their impact,” Mafabi said. “This creates uncertainty and instability, leading to strikes and economic disruption.”
Mafabi also criticized the Uganda Revenue Authority (URA) for failing to enforce existing tax laws, instead relying on Parliament to pass new laws to address collection challenges. “We are paying their salaries, but they are not doing their job,” he said.
It should be noted that Mafabi’s call for a predictable tax policy comes amid ongoing debates about tax reform in Uganda.
The Forum for Democratic Change (FDC) General Secretary has been a vocal advocate for tax reform, previously writing a minority report on taxing loss-making companies.
