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KAMPALA \u2013 Billionaire property tycoon Dr. Sudhir Ruparelia was among the prominent Kampala landlords who sat down with Uganda Revenue Authority (URA) Commissioner General John R. Musinguzi on Thursday, 17 September 2026, for a candid high-level engagement on declining rental income tax compliance.<\/p>\n
The meeting, held at Mestil Hotel, brought together key real estate players including Ambassador Godfrey Kirumira (chairman of the landlords and property owners), other city landlords, representatives of the Kampala City Traders Association (KACITA), and URA senior management. Princess Christine Gertrude Nnabanakulya also attended.<\/p>\n
URA called the session after rental income tax collections dropped by about 1% in the last financial year, even as most other tax heads recorded double-digit growth averaging 14%. The real estate sector contributes roughly 6\u20137% of Uganda\u2019s GDP and remains one of the economy\u2019s fastest-growing areas, yet compliance has lagged.<\/p>\n
In his remarks, Commissioner General Musinguzi welcomed the landlords and singled out Dr. Sudhir Ruparelia for praise, describing him as one of the pioneers who has already embraced the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).<\/p>\n
\u201cWe appreciate the pioneers that have embraced the usage of EFRIS like Dr. Sudhir Ruparelia,\u201d Musinguzi said. He stressed that the meeting was meant for honest conversation rather than blame, noting that no landlord had been prosecuted for false declaration of rental income during his tenure as Commissioner General.<\/p>\n
Musinguzi outlined URA\u2019s readiness to support landlords with a dedicated EFRIS onboarding team, written guidance, and physical engagements. He urged property owners to issue proper EFRIS receipts to tenants and warned that while dialogue remains the preferred approach, enforcement would follow if necessary under the Tax Procedures Code Act.<\/p>\n
He also pointed to Uganda\u2019s tax-to-GDP ratio of about 14% and the heavy debt-service burden (around 40% of collected revenue), saying the real estate sector must play a stronger role if the country is to raise the ratio toward 25%.<\/p>\n
Speaking on behalf of the landlords, Ambassador Godfrey Kirumira thanked URA for creating the platform and affirmed that property owners understand EFRIS is not a new tax but a digital compliance tool.<\/p>\n
\u201cWe accept that the rental sector like other sectors of the economy must understand digital tax and are willing to participate in this transition willingly,\u201d Kirumira said. He called for continuous dialogue, clear guidance before disputes arise, and policies that protect the tax base while recognising the realities of the industry.<\/p>\n
Landlords raised concerns including the current 50% cap on allowable expenses for companies and other practical challenges. Musinguzi indicated openness to policy discussions, including possible adjustments to the expense cap, provided there is a structured platform for negotiation.<\/p>\n
The engagement ended with both sides committing to improved collaboration, with URA promising practical support and landlords signalling readiness to move toward greater digital compliance.<\/p>\n
The meeting underscores URA\u2019s intensified focus on the real estate sector as a critical pillar of domestic revenue mobilisation.<\/p>\n
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