Sudhir Ruparelia Joins Property Investors As URA Pushes Tax Compliance

By Frank Kamuntu

Businessman Dr Sudhir Ruparelia was among the prominent figures who attended a high-level engagement between the Uganda Revenue Authority (URA) and city landlords, developers and investors aimed at improving tax compliance in the real estate sector.

The meeting brought together key players in Uganda’s property industry, including Ambassador Godfrey Kirumira, URA Commissioner General John R. Musinguzi, city landlords and representatives of the real estate sector.

Dr Ruparelia’s presence was specifically acknowledged by Commissioner General Musinguzi, who cited him among landlords who have embraced the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

“We appreciate the pioneers that have embraced the usage of EFRIS like Dr. Sudhir Ruparelia,” Musinguzi said.

The recognition places Ruparelia among property sector players that URA says have adopted the digital system as the authority seeks greater compliance among landlords.

Musinguzi said the real estate sector contributes about 6 to 7 percent to Uganda’s Gross Domestic Product (GDP), creates employment and supports other areas of the economy, including manufacturing and financial services.

However, he said rental income tax collections declined by about one percent in the last financial year, even as overall tax collections grew by an average of about 14 percent.

He said the engagement was intended to provide an opportunity for URA and landlords to discuss the challenges affecting compliance without immediately resorting to enforcement.

Ambassador Kirumira, called for continued dialogue between the tax authority and landlords, arguing that the property sector represents significant investments made through personal savings, family enterprises and bank financing.

He also addressed concerns surrounding EFRIS, saying landlords were willing to participate in the digital tax transition but called for implementation that takes into account the realities of the rental sector.

Musinguzi said URA would dedicate a team to assist landlords with EFRIS onboarding and provide written guidance and physical engagements to help taxpayers understand the system.

He urged landlords to issue EFRIS receipts to tenants and said enforcement would follow where dialogue and compliance efforts fail.

The Commissioner General also said Uganda’s tax-to-GDP ratio currently stands at about 14 percent, while approximately 40 percent of collected revenue is used to service the country’s debt.

He said government is targeting an increase in the tax-to-GDP ratio to at least 25 percent in the short term, with the real estate sector expected to play a significant role in expanding the tax base.