The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | JULIUS BUSINGE | The Uganda Revenue Authority (URA) has reported a remarkable performance in its half-year revenue collection, surpassing its target for the July to December 2024 period.
The tax authority collected Shs15.25trillion against the target of Shs 14.93 trillion, registering a surplus of Shs 322 billion and a performance rate of 102.16%.
Commissioner General John R. Musinguzi attributed the strong performance to Uganda’s stable and resilient economic environment, enhanced administrative measures, and the unwavering cooperation of patriotic taxpayers.
The growth represents a 16.08% increase compared to the same period in the previous fiscal year.
Domestic revenue collections totaled Shs 10.13 trillion, surpassing the target of Shs 9.87 trillion by Shs 257.06 billion, achieving a performance rate of 102.60%. This marked a 15.01% growth compared to the same period in FY 2023/24.
International trade tax collections amounted to Shs 5.43 trillion, slightly below the Shs 5.45 trillion target, achieving a 99.48% performance rate. However, this sector still posted a significant year-on-year growth of 16.79%, equivalent to Shs 780.06 billion.
URA attributed this success to several strategic initiatives, including enhanced compliance initiatives through increased taxpayer training, compliance engagements, and the use of alternative dispute resolution mechanisms.
Taxpayers surge
The expansion of the tax base saw 420,183 new taxpayers added, bringing the total to 4.88 million and generating Shs 59.01 billion in new revenue.
Implementation of income tax waivers under the Tax Procedures Code Act resulted in Shs 261.98 billion in collections. Customs enforcement efforts led to the recovery of Shs 38 billion from 9,303 seizures of dutiable and non-dutiable goods.
Additionally, legal interventions contributed Shs 86.07 billion, with Shs 55.25 billion arising from alternative dispute resolutions.
URA targets Shs 16.44 trillion for the second half of the fiscal year, accounting for 52% of the annual target.
To achieve this, the tax body plans to intensify tax administration, enhance stakeholder engagement, expand tax education, and strengthen border management.
Commissioner General Musinguzi reaffirmed URA’s commitment to simplifying tax processes, investing in efficient systems, and fostering strategic partnerships to sustain Uganda’s economic growth.
“We appreciate our compliant taxpayers and partners for contributing to this surplus, which bolsters government efforts to deliver essential services. Together, we can drive Uganda’s development agenda forward,” Musinguzi said.
As the tax administration body, Musinguzi recognizes and appreciats every taxpayer who has contributed their fair share of taxes and has supported the effort of nation-building by fulfilling their tax obligations.
“It is because of those patriotic and faithful citizens that we have been able to come this far as we are going to highlight in the report,” he said, “…and it is because of your contribution that the government has been able to provide the much-needed social services.”
“We are also doing all we can as URA to support the businesses so that they can remain afloat as they contribute their fair share towards national development,” he added.
Shs 31.3 trillion target
For FY 2024/25, the URA was assigned a net revenue target of Shs 31,369.16 billion. Of this amount, 48% (Shs 14,926.85 billion) was scheduled for collection during the period from July to December 2024, while the remaining 52% (Shs 16,442.32 billion) is set to be collected in the second half of the fiscal year, spanning January to June 2025.
Musinguzi said, the target for the FY 2024/25 remains achievable due to a robust strategy and comprehensive administrative measures.
These include strengthening tax administration and compliance, engaging stakeholders, and improving staff accountability through the performance management system.
Additionally, URA is enhancing the use of data analytics and improving risk management to identify potential revenue leakages.
The authority is also utilizing alternative dispute resolution, strengthening scientific investigations, and improving border management.
A client-centric approach is being implemented alongside efforts to expand tax education. Furthermore, URA is committed to tackling corruption and addressing integrity issues among staff and certain tax agents.
