This article was first published in the New Vision on May 19, 2021
By Conan Busingye
“The best way to teach your children about taxes is by eating 30% of their ice cream,” Bill Murray, an American actor, comedian and writer, once remarked.
Much as this applies to parents, it signifies how important it is for a child to learn about taxation as soon as they start conceptualising issues.
Besides, “It is excruciating to learn about taxes when you get your first salary after the employer pays you less than what was specifi ed in the appointment letter after deducting taxes,” John Musinguzi, the commissioner general of the Uganda Revenue Authority (URA), said.
It is on the basis of the same argument that Musinguzi says tax-compliant Ugandans should be nurtured right from their tender age.
In his remarks last week while visiting Ndejje University where he lectured students on the importance of taxation, Musinguzi said:
“Every university programme should contain a taxation course.”
He added that there is a need for collaboration between URA and education institutions countrywide to ensure a tax-literate generation.
He noted that raising revenue mobilisation requires the involvement of everyone, including students and youth.
Musinguzi, who was flanked by university vice-chancellor Prof. Eriabu Lugujjo and university finance manager Paul Mark Kayongo, said: “Administrators of education institutions as well as student leaders need to be brought on board.”
“If you do not teach your child to pay church offerings and tithes, they will grow up not knowing they have to do this in obedience to their creator,” Musinguzi added.
Similarly, “If we do not teach people about taxes when they are still young, we shall end up with a population that not only evades taxes, but also misuses the resources,” he said.
Empowering Students
The executive director for the National Curriculum Development Centre, Grace Baguma, confirmed that her team worked with URA and these details are already in the secondary school curriculum.
She said more content is being handled, “to be incorporated in the curriculum of primary schools.”
Musinguzi also explained that the National Council for Higher Education (NCHE) is now working with the education ministry to add tax to the curriculum of primary, tertiary and vocational institutions.
“Teachers have been trained, and reading materials, such as books and pamphlets have been printed,” Musinguzi said.
Regarding tertiary institutions, he explained, “discussions with NCHE to incorporate tax in academic programmes taught at university are ongoing.”
“Unfortunately, our education system took long to recognise the importance of incorporating taxation in the curriculum,” Musinguzi said.
“Even at university, only a few economics-related courses include taxation and public policy as a course unit.
“We complete primary and secondary levels of education without any mention of tax in the syllabus,” he added.
The director of higher education, Dr Jane Egau, concurs with URA that there is indeed a need to encourage universities to embrace tax education. She said this would be: “As a way of supporting the transformation of the minds of the young people, into paying their taxes.”
In agreement, Lugujjo says a lot needs to be done to raise a generation that respects and fights for its country’s development.
“When youth appreciate the value of taxation, they start looking at taxes as an opportunity to support their country other than it being a burden,” Lugujjo said.
Why The Concern?
Studies show that compliance with tax obligations would assist Uganda in generating the much-needed revenues to finance several development projects and services.
Under Article 17 (1)(g), of the Constitution of Uganda says every Ugandan citizen must pay taxes.
Despite this civic duty imposed on every citizen, URA grapples with attaining widespread voluntary and timely compliance. Some Ugandans have low tax morale and hence, the low tax payments.
What Varsities Are Doing
Makerere University’s deputy vice-chancellor, Associate Prof. Umar Kakumba in charge of academics, also says they have taxation in most of their business-related courses. He agrees that it is relevant to teach students about taxation.
Lugujjo says the university has an association of students who handle tax education and awareness sessions.
He believes that more of the content will be gradually incorporated in the lectures in the forthcoming curriculum reviews of the university.
Since its inception, URA has overseen the creation of 19 tax societies in 19 university campuses countrywide.
The societies engage in debates, exchange activities with other universities and dialogues. The societies have also conducted outreach activities in communities around their universities, such as in Nkozi, Mengo and Mbale, among others.
Like in many countries, the behaviour of taxpayers in Uganda is still a concern for revenue authorities.
Studies have also shown that the compliance of taxpayers can be affected by several factors, but education is key.
Tax, Financial Literacy
There is currently a strong push in all Organisation for Economic Co-operation and Development countries to improve financial literacy in schools and teach children the importance of being financially responsible when they enter the workforce.
Taxpayer behaviour is of concern to many revenue authorities around the world. Studies have shown that the compliance of a taxpayer can be affected by many factors, including education.
The literature shows that educating taxpayers about the social and financial impact of a taxation system can improve their willingness to comply with their country’s taxation policies.
Taxation education introduced in early years of secondary schooling could help to create taxpayers who understand their responsibility when it comes to their countries taxation systems.
Excerpt from Taxation Education in Secondary Schools – What Are Students Actually Being Taught? By Annette Morgan (Lecturer department of taxation, Curtin Law School, Curtin University)
