The Kampala City Traders Association (KACITA) reports that Ugandan traders are hesitant to formally register their businesses due to anxieties surrounding tax burdens. This reluctance is hindering Uganda's efforts to broaden its tax base and increase formal sector participation. KACITA attributes this to a lack of trust between business owners and tax authorities. Traders fear that formalisation will immediately subject them to increased scrutiny and taxation. This resistance presents a significant challenge to the government’s economic goals. The situation highlights a need for improved dialogue and potentially, revised tax policies to encourage formal business registration and compliance among Ugandan entrepreneurs. The issue underscores a fundamental problem of trust within Uganda's business climate.