Uganda Revenue Authority (URA) has clarified that it does not intend to tax donations commonly termed as “Oluwalo” received by the Buganda kingdom to aid its activities.

The Commissioner General of the government agency, John Musinguzi said the money received by the kingdom is neither information of business nor property income and thus cannot be taxed.

This disclaimer follows allegations that made rounds in the media late last year, 2023, saying that the two parties were clashing over the tax agency’s need to tax the over 1 billion shillings of donations given to the kingdom during their fundraiser.

In December last year, information made it to the media alleging that the Uganda Revenue Authority (URA) had plans to tax the 1.5Bn in donations, commonly known as “Oluwalo”, received by the kingdom during their fundraiser.

Yesterday, at the Buganda Kingdom headquarters in Mengo, results from an approximately two-hour closed-door discussion between URA officials and the Katikkiro of Buganda, Charles Peter Mayiga, revealed that the tax collection agency does not intend to tax the money received by the kingdom.

In light of the public's complaints regarding e-receipts, Musinguzi acknowledges that these concerns arise from a lack of understanding about the technology. He further encourages individuals to embrace the technology offered by agents.

Musinguzi noted that the country’s tax to Gross Domestic Product (GDP) ratio stands at about 14%, still lower than the 16% average of sub-Saharan Africa because of the low tax compliance rate by taxpayers. He said they intend to engage leaders to achieve the goal.

The Katikkiro of Buganda, Charles Peter Mayiga also added his voice to call for tax compliance, saying citizens only have the right to ask for accountability after paying taxes.

He additionally recommended that individuals register their businesses, highlighting the importance of maintaining proper Books of Accounts to prevent unforeseen situations.

To demonstrate support and dispel any lingering rumours, the URA commissioner presented a generous contribution of 5 million from the agent to the kingdom.