By Our Reporters
Uganda is an economy of slightly above Shs27trn and a fraction of this (actually Shs15trn) is got from taxes paid by both natural and corporate citizens (call them companies). In this article we reflect on 273 companies that are listed by the government (specifically finance ministry) to be the top tax payers (as of the preceding FY). In total the 273 companies’ tax contribution amounted to slightly over Shs4.2trillion. In position number one is Vim Vanhelleputte’s MTN Uganda (Shs430bn) whose general overall contribution we last week profiled showing why UCC and other regulators simply consider it to be a too big entity to fail (or be failed). Other big contributors include Amos Nzeyi’s Crown Beverages in number 15 paying Shs77bn as of last FY and Patrick Mweheire’s Stanbic bank in number 13 paying Shs78bn. UK-educated Julius Kakeeto’s Orient bank isn’t doing badly in number 43 paying Shs18.5bn as of last FY.
The top tax payers’ list also clearly shows the extent to which property mogul Sudhir Ruparelia won’t be easy to wish away; his Meera Investments paid Shs2.8bn and Speak Resort Munyonyo Shs1.9bn and of course not forgetting which in its last year of operation paid Shs33bn to URA in taxes. A number of his companies appear on this GoU list of the top 273 tax payers.
Mzee Sekakalala’s Ugachick Poultry Breeders is number 190 with its Shs3bn paid to URA. Industrial Area-based Civicon Construction Ltd, about which we reported in February after workers took it to court for nonpayment of their salaries, is number 189 having paid Shs3.2bn in taxes. Construction giant Dott Services, which Bukedea MP Anita Among shielded from Allen Kagina’s wrath by pleading their case to the President, is number 177 having paid Shs3.4bn to URA headed by Kagina’s protégé Dorris Akol. Cavendish University, which Mzee Kaunda brought to Uganda almost a decade ago, is number 178 having paid Shs3.4bn slightly below Dott Services. During a visit, URA IT Manager Charles Lugemwa who represented Akol sometime back commended Cavendish for being a model tax payer. Kansanga-based Rainbow International School, which has less than 1,000 students because it deliberately limits numbers, is number 173 having paid Shs3.5bn. Deeply Catholic Chinese tycoon Paul Zhang’s Nanjing Restaurant & Hotel Ltd, which is just one of his many successful companies other examples being Tian Tang etc, is in number 221 having paid Shs2.5bn as of last FY. Prof John Senyonyi’s prudently-managed UCU, which many rate to be the most excellent private university in Uganda, is in number 131 having paid Shs5.2bn. This is really very impressive for an academic institution that is indigenously owned by the CoU province. In its hey days, Amina Morge’s Nakumat annually paid Shs6.5bn in taxes to URA.
Wealthy Minister Sam Kutesa’s ENHAS, which for years has been handling all cargo at Entebbe Airport, is number 109 having paid Shs6.9bn in taxes. This is remarkable because indeed super rich Kutesa is the only minister directly traceable on this list of top 273 tax payers in Uganda. Luzira-based Graphic System, which late last year was recognized by UIA for its strong corporate values and job creation, is in number 84 having paid Shs9.6bn last FY in taxes. Kabaka’s man Gastur Luke Ntake’s bakery business is at number 79 having paid Shs10.4bn. This is for his confectionary business only not including his media, water and real estate business. Barbra Mulwana’s Jesa Farm Dairy Ltd (which undisputedly leads the dairy products industry) is in number 60 having paid Shs12.9bn. Very intriguingly, Lebanese tycoons-owned FOL Logistics which is at number 22 having paid Shs39bn last FY, had part of its operations (the rice business) closed due to lack of rice for milling and thereby diminishing URA’s potential to collect more taxes. See more in the full comprehensive list published as part of this story.
KEEPING M7 IN POWER;
We are arguing that, given the way President Museveni has always bragged about Uganda increasingly becoming self-reliant through increased tax collection, by religiously meeting their tax obligations, these companies have inadvertently kept him in power. Their taxes put him in a position to become indifferent and confident that he can tell off “nosy” western powers and get away with it each time they insist on scrutinizing his track record regarding good governance. Besides, and most crucially, their taxes enable him pay his MPs well and deliver social services which ideally voters reciprocate by repeatedly voting his NRM party back to office from Presidency to the lowest level. For comments, call/text/whatsapp us on 0703164755!
