Experts at the Economic Policy Research Centre (EPRC) have recommended the introduction of a unified annual payment system to consolidate the numerous levies imposed on businesses, aiming to reduce the burden of compliance and improve clarity for taxpayers.

The call follows findings from the latest Uganda Business Climate Index (UBCI), which revealed a growing concern among business managers regarding multiple taxation.

According to the EPRC, perceptions of over-taxation rose by 5.2 index points from 72 in the October–December 2024 quarter to 77.2 in the January to March 2025 quarter.

Speaking at a press conference to release the report, Dr. Brian Sserunjogi, Senior Research Fellow at EPRC, noted that many business owners continue to face challenges distinguishing between taxes, fees, and other levies. This confusion, he said, is exacerbating compliance fatigue and undermining the ease of doing business.

Dr. Sserunjogi urged government bodies such as the Uganda Revenue Authority, local governments, and the Ministry of Finance to step up awareness campaigns and consider simplifying payment systems to support Micro, Small, and Medium Enterprises (MSMEs).

The quarterly index surveyed 1,152 formal enterprises across three key sectors manufacturing, agriculture, and services.

The latest results indicate a slight decline in overall business sentiment, with the index falling from 91.1 to 88.8 during the period under review.

EPRC attributes the decline to reduced business activity, lower profitability, and a drop in capacity utilization.

The report highlights the continued vulnerability of Uganda’s business environment, particularly for MSMEs, and underscores the need for more responsive policy interventions.

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