The Future of Smallholder Farming in Eastern Africa - Uganda ...

Table 3.14: Retailers’ views of government support
Area of government support Improved No improvement
Transport facilities and access 9.3% 90.7%
Telephone and other
35.5% 64.5%
communication services
Security and legal services 15.0% 85.0%
Support for traders’ association 10.3% 89.7%
Source: Survey, 2002.
Retailers were also asked about the level of taxation. The majority (about 91 percent) claimed
that the level of taxation is high. The method of tax assessment is also considered unfair
because it is not based on sales income. The method of tax administration and assessment
leaves much to be desired (Table 3.15).
Table 3.15: Retailers’ views of the level of taxation and tax assessment
Tax levels Number %
High 72 91.1
Average 7 8.9
Total 79 100.00
Assessment
Not based on income 61 80.3
Needs improvement 3 3.9
Not reasonable 7 9.2
Source: Survey, 2002.
3.5. Barriers to entry and major problems
A number of institutional and technical problems have hindered traders’ freedom to engage in
grain trade. Lack of access to stalls, a shortage of working capital, high taxes, and lack of
contact and trust with regional traders are among the major problems (Table 3.16).
Table 3.16: Major problems for entry into retail
business
Type of problem Yes No
Lack of access to stall 62.6% 37.4%
Shortage of working capital 89.9% 10.1%
High renting cost of stall 73.8% 16.2%
High level of taxation 72.9% 26.1%
Difficulty in processing license 37% 63%
Lack of skill 40.2% 59.8%
Source: Survey, 2002.