Uganda: Companies Weather Difficult Year to Pay Cheques to URA

Source from:  The Monitor (Kampala) 23 October 2007 10/23/2007

LAST financial year was a trying one for investors in Uganda. The economy was characterised by frequent power-cuts, high transport costs due to the escalated fuel prices, fake goods, and urban violence due to demonstrations against some of government's unpopular decisions. However, some investors beat the odds to pay out massive sums of money to the treasury through Uganda Revenue Authority. MTN emerged the best source of cash of URA's 1000 top tax payers, according to report that was released by the tax body on September 12. MTN handed Shs173.9 billion to URA, a figure thrice as much as its competitors' contribution. Uganda Telecom which has not yet blown its horn about the size of its subscribers came second in the sector remitting Shs32.2 billion in net tax. Celtel, which now holds more than 1.2 million of the 3.7 mobile phone subscribers came third in the sector with a contribution of shs21.5 billion. Besides riding on the back of increased demand for communication services, Mr Erik Van Veen, the chief commercial officer of MTN attributes the company's excellent performance to its commitment to its business strategies. He said the growth in tax paid is also a result of diversifying the company's revenue sources. The company started off with mobile phone services then introduced, office and home fixed lines, pay phones and internet among other services. Shell Uganda played its cards well, taking advantage of the rising oil prices to please URA with shs140 billion. Caltex came second in the sector giving out about Shs49.9 billion. Although Total Uganda got itself in the third, it beat Caltex at amassing refunds from URA. Total received shs2.3 billion, Shs683 millions behind Shell which was number one on tax refunds with shs3 billion. Ugandans' love for the beer and spirits helped Uganda Breweries Limited contribute more than Shs101 billion to URA, placing her on top of the beverage industry. The beer and spirits' maker was followed by another, Nile Breweries, and Coca Cola manufacturer Century Bottling company at More then Shs60 and Shs43 billion, respectively. Bank of Uganda emerged as the best in the banking sector remitting shs35.4 billion with which got it a tax refund of Shs78 billion. Stanbic bank a listed equity on the Uganda Securities Exchange followed central bank of Uganda paying out shs32.2 billion. Standard Charted bank and competitors closely followed the latter. British American Tobacco Uganda (BATU) which has been making annual losses for the last 3 years surprised manufactures by remitting shs49.8 billion. The sum placed BATU among the top 10 tax payers and the number one, in the industry. Ms Catherine Adengo,the Corporate Affairs Manager of BATU said: "BAT Uganda achieved increase in sales of cigarettes countrywide. As a result, the company also saw a 4 per cent growth in contribution to government revenues." Enditem