By Walimbwa Moses
Deputy Speaker of Parliament Thomas Tayebwa has urged the business community to improve tax compliance and uphold ethical practices, saying Uganda needs a stronger private sector to support economic growth and national development.
Tayebwa made the remarks on Wednesday during the inaugural National Prayer Breakfast Business Forum at Parliament, where legislators and business leaders discussed the private sector’s contribution to Uganda’s development.
He said Government could raise more domestic revenue by bringing more individuals and businesses into the tax net instead of repeatedly introducing new taxes.
“How do you expect us to build more roads, generate more power and provide you with water, when we are still hovering around a tax-to-GDP ratio of 14 per cent, yet the sub-Saharan standard is at 17 per cent?” Tayebwa asked.
He added that Uganda could raise its tax-to-GDP ratio to about 21 per cent if more taxpayers met their obligations.
The Ministry of Finance has put Uganda’s tax-to-GDP ratio at approximately 14.3 per cent and is pursuing stronger domestic revenue mobilisation to enable Government to finance more development programmes using locally generated resources.
Finance Minister Henry Musasizi said on 5th October that Uganda needed to widen its tax base by bringing more taxpayers into the system rather than placing a heavier burden on those already paying taxes.
Tayebwa acknowledged that Government also had a responsibility to create conditions that enabled businesses to invest, expand and create jobs.
“The Government does not create wealth. The Government creates conditions which will enable you, the business community, to create wealth,” he said.
He urged business leaders to engage Parliament on policies and laws affecting their operations and called for fair competition across the private sector.
The Deputy Speaker also challenged business owners to strengthen accountability within their companies, noting that corruption should not be treated as a problem affecting Government alone.
He urged companies to take action against employees who steal from their employers, warning that misconduct within the private sector could undermine businesses and the wider economy.
“The way we handle cases of corruption by Government officials should be the same way we handle cases of corruption by people who frustrate the private sector,” he said.
Tayebwa further encouraged entrepreneurs to look beyond profits and consider the jobs they create, taxes they pay, suppliers they support and services they provide to communities.
“If the major aim of your business is to make money, then you’re living on borrowed time,” he said.
Emmanuel Katongole, Executive Chairman of Quality Chemicals and Industries, who delivered the keynote address, also stressed the importance of integrity and responsibility in building sustainable businesses.
“Profit must never be the only purpose of a business, because an entity that makes impact is stronger than one that is premised on making money,” Katongole said.
He called for an environment that supports new businesses and provides affordable access to capital, noting the importance of creating opportunities for entrepreneurs to establish and grow their enterprises.
Tayebwa also encouraged established entrepreneurs to mentor young people and share their experiences with those starting businesses.
“Mentor young people. Mentor other business people. One candle can light a thousand candles,” he said.
The forum brought together legislators and business leaders from Uganda and other countries, including Rwanda, Burundi, Nigeria, Tanzania, Germany, India and Cameroon.
Tayebwa’s remarks underscored the shared responsibility of Government and the private sector in driving economic growth, with Government expected to provide a fair and supportive business environment while companies comply with tax laws, uphold ethical standards and contribute to national development.