Tax collecting body, Uganda Revenue Authority (URA) has Tuesday launched yet another online and point of sale tax payment system which is aimed at further improving convenience and efficiency in tax collection.
The payment system which will be facilitated by United Bank of Africa (UBA) will enable tax payers to use VISA card and MasterCard using point of sale machines as opposed to going to banks.
The payment method which is the first to be rolled out in East Africa allows tax payments through cash, cheque, Pay Way, mobile money, Real-time Gross Settlement System (RTGS) and Electronic Funds Transfer (EFT).
Users will be able to register a payment on URA’s portal using their VISA or MasterCard number and complete the payment of taxes and other government services (court bail, Visa fees at the airport, passports, traffic fines) on the bank’s portal.
By mere swipe of a VISA or MasterCard, an individual will be able to make both online and point of sale payments irrespective of the bank that issued the card. URA believes that this payment method will increase compliance in tax collection and make it convenient for anybody making payments across the globe.
The service will especially ease the work of businessmen who are occupied with work and who in some circumstances bring excisable goods into the country and can’t access bank services especially at night.
The Commissioner General of URA Ms. Doris Akol in her remarks during the launch said this innovative method will re-engineer business processes and increase voluntary payment of taxes.
“This is a milestone in achieving process efficiency and will improve our rankings as a country in the ease of doing business global index. It is also a better way to formalize a very informal economy,” Akol said.
According to Akol, 90% of clients are currently making tax payments through URA’s online platforms like Mobile Money, Pay Way, e-banking among others. “These methods have made is more easier for our clients to make payments but also saved URA administrative and insurance costs that are involved in collecting taxes by cash.”
Johnson Agoreyo, the CEO of United Bank of Africa said that online payment provides a solution to the limitations in URA’s services and will foster inclusiveness in accessing these services.
“We have simplified work because now one doesn’t have to carry cash and go around looking for a bank to make their payments. It will bring about effectiveness monitoring.”
The method will not only benefit the domestic clients but also Ugandan diaspora who will now easily make electronic payments through the embassies as well as foreign tourists who wish to pay for Visas before arrival.
Victor Ndlovu the Manager for VISA Inc. in Sub Saharan Africa noted that the introduction of swipe payments is a driver for; a diversified knowledge led and inclusive economy, transparency in government as well as reliability.
URA could soon consider phasing out cash payments across all its branches in Uganda and instead roll it point of sale machines, Akol told journalists.