Businessman Dr Sudhir Ruparelia was among the notable figures who took part in a high-level engagement between the Uganda Revenue Authority (URA) and city landlords, property developers and investors as the tax body pushes for improved compliance in Uganda’s real estate sector.
The meeting brought together major stakeholders in the property industry, including Ambassador Godfrey Kirumira, URA Commissioner General John R. Musinguzi, city landlords and representatives from the real estate sector.
During the engagement, Commissioner General Musinguzi specifically recognised Dr Ruparelia among landlords who have adopted the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
“We appreciate the pioneers that have embraced the usage of EFRIS like Dr. Sudhir Ruparelia,” Musinguzi said.
The acknowledgement places Ruparelia among property sector players that URA says have embraced the digital tax system as the authority works to improve compliance among landlords.
Musinguzi noted that the real estate sector contributes approximately 6 to 7 percent of Uganda’s Gross Domestic Product (GDP), while also providing employment and supporting other sectors of the economy, including manufacturing and financial services.
However, he revealed that rental income tax collections fell by about one percent during the last financial year, despite overall tax collections increasing by an average of around 14 percent.
He explained that the engagement was designed to give URA and landlords an opportunity to openly discuss challenges affecting tax compliance before the authority resorts to enforcement measures.
Ambassador Kirumira called for continued dialogue between landlords and the tax authority, noting that the property sector represents substantial investments built through personal savings, family businesses and bank financing.
He also raised concerns about EFRIS, saying landlords were prepared to take part in the digital tax transition but wanted its implementation to reflect the realities and challenges of the rental business.
In response, Musinguzi said URA would assign a dedicated team to support landlords during the EFRIS onboarding process. The authority will also provide written guidance and conduct physical engagements to help taxpayers understand how the system works.
He urged landlords to issue EFRIS receipts to their tenants, warning that enforcement measures would be taken where dialogue and compliance efforts do not achieve the desired results.
The URA Commissioner General further disclosed that Uganda’s tax-to-GDP ratio currently stands at about 14 percent, with roughly 40 percent of collected government revenue going towards servicing the country’s debt.
Government, he said, is seeking to raise the tax-to-GDP ratio to at least 25 percent in the short term, with the real estate sector expected to make a significant contribution towards broadening the country’s tax base.
