The Deputy Speaker of Parliament, Thomas Tayebwa has commended organisations excelling in financial reporting, saying it is a sure way of sustaining businesses and widening the tax base.
Tayebwa who was officiating at the Financial Reporting (FiRe) Awards at the Kampala Serena Hotel on Thursday, 01 November 2023, said the economy is sustained by a few companies which are tax compliant leaving the country with a heavy debt burden.
The FiRe Awards are an annual event organised by the Institute of Certified Public Accountants of Uganda, Capital Markets Authority and the Uganda Securities Exchange to award public and private sector entities and Not-for-profit organisations that are excelling in financial reporting.
During the event, Tayebwa underscored the importance of the government providing incentives to companies that adhere to financial reporting principles.
He highlighted that proper financial reporting and adherence to business ethics are key to Uganda’s sustainable economy.
“In government beyond financial reporting,we can never ignore the organised(companies). The moment you are organise we listen to you.The moment you are scatterd you go alone ,we may not listen to you,”he said.
Tayebwa further explained that improved compliance would result in an expanded tax base, leading to a higher GDP ratio.
Currently, the GDP ratio stands at approximately 13%.
He proposed increasing the tax GDP ratio to around 19%, which would generate an additional income of around 10 trillion and allow the country to reduce borrowing while allocating more funds to critical areas in the budget.
In addition, Tayebwa emphasised the significance of businesses engaging in ethical financial reporting practices.
“As a businessman, what i have learnt is that the moment you build business on wrong ethics, on ethnics of dodging taxes ,influence paddling then that business is not sustainable because the time will come when you will no longer influence,”he noted.
He noted that building a business on unethical practices such as tax evasion and financial engineering is unsustainable in the long run.
“The businesses that are reporting are being cheated by those who are not reporting. That is unfair competition,”he said.
He stressed that financial reporting is crucial for business survival, expansion, and attracting potential partners, adding that unfair competition arises when some businesses fail to report accurately.
Stephen Ineget, Chairperson of the FiRe Awards Committee, mentioned that they received 100 entries for the 2023 Financial Reporting Awards.
This year’s theme focused on Environmental, Social, and Corporate Governance (ESG), highlighting the significance of reporting as brand storytelling.
ESG serves as an external investment framework that allows organizations to communicate their initiatives and enables investors to assess performance and risk.
It encompasses environmental impact, social responsibility, and governance best practices.
Ineget explained that organizations are now expected to demonstrate not only their financial performance but also their commitment to sustainable and ethical practices.
Companies that incorporate ESG into their operations have the advantage of attracting investors and financing. ESG reporting enables investors to align their investments with organizations that prioritize environmental sustainability, social responsibility, and transparency in governance.
The FiRe Awards recognised various organisations for their outstanding financial reporting and corporate governance.
The National Social Security Fund (NSSF) won the Silver Integrated Report of the Year Award, Post Bank received the Bronze Integrated Report of the Year Award, and Stanbic Uganda Holdings Limited was awarded the Corporate Governance Award, among others.
Josephine Okui Okwakol Ossiya, President of ICPAU, expressed excitement about the awards and pledged a continued commitment to promoting excellence in financial reporting.
