Tax body in Shs373b shortf all

The Uganda Revenue Authority has failed to collect taxes worth about Shs300 billion, constraining the country’s resource envelope, and subsequently forcing the government to ask for cancellation of some outstanding debts.

Legislators on the Finance Committee yesterday revealed the figures indicated that as of March this year, Shs373.53b had not been collected of which, Shs122.8b is in court, Shs98.48b at various stages of recovery and Shs2.31b in government arrears.

The Committee chaired by Mr Frank Tumwebaze (NRM, Kibaale) was, however, concerned that the stock of uncollected tax revenue included unexplained deficit amounting to more than Shs149.94b even as URA officials put the total outstanding debts at Shs128.5b.

Not convinced
URA responses to the Committee indicate that an upward trend in uncollected revenue from Shs113.88b in June-July 2008/09 to Shs204.8b in 2009/10. The committee heard that after failure to collect taxes from some companies, the Finance Ministry has asked Parliament to write off more than Shs4.3b, a proposal the committee said they would block.

“We cannot accept the government request to write off this money unless we get all the details (beneficiaries) and the reasons why these people have failed to pay taxes,” Mr Tumwebaze said.

Mr Moses Kajubi, the Commissioner Domestic Taxes said the planned write off is not deliberate.