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KAMPALA, UGANDA | THE INDEPENDENT | The Uganda Revenue Authority (URA) has surpassed its expected revenue collection for the first half of the financial year 2024/25 by 322 billion Shillings.
URA collected 15.2 billion between July and December 2024, surpassing its target of 14.9 billion Shillings.
“This 102.16 percent achievement rate is not just a testament to robust economic performance but a reflection of strategic administrative shifts and a client-centric approach to tax compliance,” said John Musinguzi, the URA commissioner general at a press briefing on Wednesday.
He adds that with a significant growth rate of 16.08 percent compared to the same period last financial year, URA’s achievements underscore the value of innovation and collaboration in overcoming systemic challenges.
According to Musinguzi, the highlight of the performance is not mainly about exceeding targets, but the solutions that made this possible and the lessons they offer for sustainable revenue growth.
In recent years, URA has faced persistent challenges, from tax evasion to compliance fatigue among taxpayers.
Musinguzi says URA’s embracing of technology has been a cornerstone to this achievement, “Introduction of prefilled tax returns for rental tax and local excise duty has simplified compliance, reducing both costs and turnaround times for taxpayers,” he stated. He said that expanding such digital systems across all tax categories could transform revenue collection.
Musinguzi also said that Uganda’s tax base had grown significantly, with 420,183 new taxpayers registered in the first half of FY 2024/25, bringing the total number of taxpayers to 4,881,983.
He attributed the growth to targeted initiatives aimed at enhancing compliance and simplifying tax processes.
“This growth, which yielded 59.01 billion shillings in revenue, was driven by the use of third-party data, simplified Tax Identification Number (TIN) acquisition, and intensified field operations.”
He further stated that the authority envisions a future where URA integrates AI-powered systems to identify potential taxpayers in emerging sectors like e-commerce and gig work, and to him such tools could broaden the tax base even further, ensuring long-term revenue stability.
“Instead of relying solely on enforcement, URA has invested in taxpayer education and relationship building. Regular sensitization campaigns, targeted sectoral consultations, and deliberate compliance engagements have shifted the perception of tax collection from a punitive process to a collaborative effort,” he said.
He also said that introducing reward programs for timely compliance or gamifying tax filing could further enhance taxpayer cooperation, creating a culture of voluntary compliance.
Musinguzi also noted that the URA is targeting 16.4 billion Shillings in revenue collection for the second half of 2024/25, representing 52 percent of the annual target to achieve the target, URA will strengthen taxpayer relationships, build trust through continuous education, simplified processes, and transparent systems and addressing integrity issues within URA’s staff and tax agents to maintain public trust.
Others include strengthening border management systems and intensifying enforcement to optimize international trade revenue.
Musinguzi also said that in a bid to meet the annual target, there is a need to work together with the government, the private sector, and civil society to foster a culture of compliance and patriotism.
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