{UAH} WBK@Govt don't understand how tourism benefits government

I called up a key government leader recently just to understand why tourism has not been given the right attention by government, and he said:

1. They don't understand how tourism benefits government as in what goes into the government coffers......... I labored to explain and I think as a person he understood but I realize we must labour to explain to the key government decision makers

2. He said, many tourism players don't pay taxes- same concern URA has raised before.According to URA less than 30% of Tourism players have tin numbers which means over 70% don't pay taxes. I am not sure that is very true.And here my question was shd government then continue to push the few us who our taxes and employ Ugandans? I also think government shd pursue those that are doing business and not paying taxes.....and for the private sector government will listen to us more if we pay our taxes.......

I thought the government should set conducive environment to attract many players that would in the end pay taxes! Now they want companies to pay taxes when not getting good business and hustling alone all through.

Tourism was one of the main contributors of foreign exchange earnings for the country, this can be also be witnessed by the fact that the shillings always suffers greatly against the dollar when we are in the low seasons of Tourism.

If indeed only 30% of tourism players pay taxes:a) where are the loopholes b) how can AUTO and URA partner to increase compliance? its only after AUTO works with the URA and not against them that these tax issues can be resolved...'we against them' will not work,the state always wins.Not everyone has a tour firm or business and very few ugandans have been to the parks.When tour operators say they do not want to pay taxes, but schools, hospitals, churches should pay, how does that sound to a ugandan in the village? sounds like some rich men earning $1 billion every year do not want to share their wealth.....the industry must sound emphathetic and realistic.

i think we must be realistic:donors have largely pulled out. We have a sh15trillion national budget and our GDP is just $20b.Currently, URA is working closely with KCCA to cast the tax net further.

As we fight the VAT battle let's think about the above.if VAT on hotels does not pass...govt will look at increasing PAYE....in the end we still get caught. there should be a mathematical/logical argument.....e.g 1) How are visitor numbers at present? 2)how will VAT on hotels affect rates? 3) will numbers drop, rise, or remain the same? 4) how transferable is the tax? 5) how does it affect competitiveness 6) is there an alternative area the government can tax.....is there an incentive they can create as a trade off?

If gov't goes ahead with the hotel tax: a) can they place this money in a fund and guarantee that 60% of the money returns to the industry through UTB and grants to the industry?

Perhaps what the Tourism stakeholders would also want to do if not already done so, is bring together a structured team of Tourism budget advocates that would provide the much needed analysis and justification to the powers that be that work out these national budget allocations. The Advocate group would not only consist of technocrats on the subject, but range across sectors as long as one yields the necessary power of influence to relevantly change the perceptions of the Budget planners. And of course raise the public profile of Tourism as a national benefit. This would present a much more structured, consistent, and impactful approach – obviously in addition to the ongoing pressure points. There is so much to sell on the case for increased investment in tourism – but maybe sporadic lone emissaries may only serve to gain the ear of some critical influencing actors for awhile, and these ears will move on to those sectors that provide the level of consistent engagement they need in form of analyzed information telling a strong pragmatic benefit story. With facts and figures. The time to start is now actually, if you do want to start to influence the ensuing budget outcomes in your favor. A few other sectors have done so and achieved some (not all) gains. More food for though
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H.OGWAPITI
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"To announce that there must be no criticism of the president, or that  we are to stand by the president right or wrong, is not only unpatriotic  and servile, but is morally treasonable to the American public."
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