As the controversy over (URA)Uganda Revenue Authority`s recently announced taxation of public entertainment events continues to rage on, more stakeholders have expressed displeasure over the move, saying the new policy would stifle the industry, which the government has in no way supported much since its inception.
On 23rd December 2022, URA released a pdf brochure titled Taxation of Entertainment Public Events, which includes public entertainment events with players like artists, performers, authors, producers, promoters, event managers, recreational space owners, bar owners, and hotel owners.
URA on this matter quotes the Uganda Bureau of Statistics (UBOS which had a report on entertainment that said that this sector contributes 47.1 trillion Shillings to Uganda’s economy therefore URA states that Uganda`s entertainment industry has a lot of potential to support the economy through taxation of the individuals employed.
URA, therefore, stated that all persons earning income from the entertainment business are obliged to register for taxes with them and urged such persons to get the approval of their applications as they are given a Tax Identification Number(TIN) as soon as possible.
URA stated that the failure of the Ugandan entertainment players aforementioned to register for a TIN will mean that such persons are liable to a fine not exceeding Shs. 3,000,000 or imprisonment not exceeding six years or both on conviction if the failure/act was done knowingly or recklessly and a fine not exceeding Shs. 1,000,000 or imprisonment not exceeding two years or both on conviction in any other case.
On hearing such developments, Ugandan entertainment/art leaders are divided as some are in support of URA`s move while others are saying that it should wait until full consultations and engagements of all stakeholders of the industry.
Daniel Kazibwe alias Ragga Dee who is the acting chairman of National Culture Forum(NCF), an Apex body for art associations insists that URA should go on with this as consultations were already done in Gulu at the beginning of the year and on this matter, he is supported by Tyaba Charles the General Secretary for Uganda Film Association UFA.
Charles Batambuze the Vice Chairman of NCF clarifies that URA wasn’t in Gulu though the issue of taxation and sector contribution was widely discussed, he advises that URA ought to make formal consultations. This position is supported by Emmanuel Mulondo the Executive Secretary of NCF. He adds that URA actually contacted NCF and both parties agreed on holding stakeholders’ engagement but the consultations didn’t materialize.
Phina Mugerwa the General Secretary of the Uganda Musicians Association UMA noted that she needed to consult her team members after the festive season.
We couldn’t get hold of Abby Musinguzi aka Abitex the President of Uganda Promoters Association UPA by the of publishing this article as his known numbers were off.
Following the continued reactions that greeted the announcement, URA assured stakeholders that there is no cause for alarm, saying this move is for the benefit of everyone. One official from URA said the initiative is not a stand-alone, but a part of the efforts of the state government, to ensure a comprehensive, all-embracing policy initiative designed to resolve all the current challenges facing the industry, such as piracy, effective distribution, production funding, inter and intra-guilds and associations discipline to curb the all comers and all systems go affairs.
He stated: “The comprehensive policy initiative also encompasses mass job creation, profitable investments guarantee and accelerated rural areas development.
