Closed Pioneer Bus Company Threatens To Sue For Shs53bn

viagra order geneva; font-size: small; line-height: 115%;”>The tax body’s Credit Manager Hebert Ssempogo confirmed the Kampala-based bus company was in arrears of Shs8bn.

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He further noted Pioneer has not been fulfilling its tax obligations since 2012.

“For one to operate business in the country, you have to pay taxes, short of which we close your operations,” confirmed Ssempogo.

“Pioneer makes money but it does not want to pay taxes. This is unacceptable.”

However, Pioneer co-director John Masanda described URA’s move as “insensitive” and “disruptive.”

“You can’t wake up one day to shut down a company like ours which has invested billions of shillings. People are stranded on the roads because our buses are not on the streets,” exclaimed Masanda.

“For us we know that our contract to operate transport business in Kampala is still running.”

He further blamed government and KCCA for not honouring their obligations in the contract with Pioneer which include gazetting specific areas to allow buses park and pick up passengers without undue interference from taxis.

He further noted the bus company was a beneficiary of a tax holiday for one year.

“KCCA has failed to create a convenient environment for our business to thrive. They have failed to decongest the city so instead of making 12 trips per bus every day, we are forced to make only 6 due to traffic jam. This is why we are making losses,” added Masanda.

He also warned that should KCCA fall short of reviewing the bus company’s contract, the directors would sue government for loss of $20m (Shs53bn) which the directors have so far invested.

Informed sources say Pioneer officials and URA boss Allen Kagina held a meeting today at tax body headquarters in Nakawa to address the situation.


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