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The target for revenue collection in the fiscal year 2023/24 has been set at Shs29trillion
Kampala, Uganda | JULIUS BUSINGE | Uganda Revenue Authority has reported Shs57bn as surplus revenue collected for the FY2022/2023, registering a big achievement given the recent years’ mixed performance that was dented by COVID-19 lockdowns and a slow economy.
John R. Musinguzi, the commissioner general of URA said at a news conference held in Kampala on Aug.23 that the achievements reflect a strong sense of patriotism and loyalty of the citizens.
“The taxpayers’ valuable contributions have empowered the government to provide vital social services to our people,” he said.
In FY2022/23, the revenue body had a net revenue target of Shs25,151.57 billion (approx.25.1tn) but, it surpassed the target and collected Shs25,209.05billion (approx.25.2tn), representing 100.23% performance.
The year recorded a significant revenue growth of 16.40% (Shs3,551.04 billion) compared to the previous financial year, thanks to the stable and resilient economic performance, enhanced administrative measures, and the cooperation of patriotic taxpayers, according to Musinguzi.
Domestic tax performance
Direct domestic taxes collected exceeded the target with a surplus of Shs724.62 billion, while non-tax revenue, including stamp duty and embossing fees, generated a surplus of Shs65.81 billion.
However, indirect domestic taxes fell short of the target, with a deficit of Shs553.54 billion.
In terms of international tax collections, a total of Shs9,326.64 billion was collected, which is slightly below the target of Shs9,462.70 billion.
There was a notable increase in revenue growth of Shs892.47 billion (10.68%) compared to the previous fiscal year. However, the collections fell short of the target by Shs136.05billion.
Import duty registered a surplus of (Shs275 17 billion), as did temporary road licenses with a surplus of (Shs12.66 billion), and export levy with a surplus of (Shs3.75 billion). However, several tax categories incurred shortfalls including; VAT on imports which fell short by (Shs161.57 billion), petroleum duty by (Shs152.89 billion), excise duty by (Shs55.35 billion), withholding tax by (Shs23.79 billion), infrastructure levy by (Shs19.10 billion), and surcharge by (Shs14.93 billion).
Good performance explained
Musinguzi said continued and sustained economic growth of 5.3% influenced job creation which directly generated more taxes for the government.
To improve administrative procedures, Musinguzi said, several measures were implemented including; increasing operational hours, improving arrears management, engaging with taxpayers to encourage compliance, utilising mobile offices, increasing awareness through sensitisation efforts, using alternative dispute resolution, implementing compliance initiatives such as audits and vetting, using the information to inform decision-making. The others were; conducting tax investigations, implementing a new performance management approach, and using technology in custom processes.
Taxpayer register increase
Meanwhile, in the fiscal year 2022/23, the number of taxpayers registered increased by 882,286, indicating a growth of 33.70%.
By the end of the fiscal year, the total number of taxpayers on the register was 3,500,294. Of this, 194,143 were non-individuals, while 3,306,151 were individual taxpayers.
The growth is attributed to the success of the Tax Registration Expansion Program (TREP), which used intensive fieldwork and data-driven registrations to achieve these results.
During the year, customs enforcement operations were carried out across the country, resulting in the recovery of a total of Shs132.77 billion through 14,187 seizures. The majority of these recoveries were attributed to various offences, including under-declaration, misdescription/false documentation, undervaluation, outright smuggling, misclassification, concealment, and more.
In terms of arrears management, during the fiscal year recoveries totalled Shs1991.39 billion, with government commitments being fulfilled to the tune of Shs713.47 billion.
Outlook for FY2022/23
The target for revenue collection in the fiscal year 2023/24 has been set at Shs29,218.98 billion (approx.29.2tn), which is a noteworthy increase of Shs 4tn compared to the previous year.
Musinguzi said, “We are optimistic that this target can be achieved given the expected economic growth of 5.5-6.0 per cent and the revenue growth achieved in the previous year.”
In addition, the tax authority has devised a comprehensive plan that includes measures such as strengthening tax administration and compliance, engaging with stakeholders, providing extensive education, and improving staff accountability through performance management.
The other areas include; implementing digital stamps and EFRIS, enhancing the use of data analytics, artificial intelligence, and risk management to identify audit cases, and revenue leakages, using alternative dispute resolution, improving staff capacity and productivity, strengthening science investigations, and managing borders effectively.
