URA in Shs56b shortfall
Posted Friday, December 6 2013 at 02:00
Kampala- Uganda Revenue Authority (URA) has registered a Shs56 billion deficit at a time that it is supposed to be battling shortfalls it accumulated in the first quarter of this financial year.
However, the tax collector says they are optimistic that beginning next year, they will start to narrow the deficit that leapt from Shs26 billion in the last quarter (July to September) to Shs56 billion in the beginning of the 2nd quarter.
“Net revenue collections for the period of July to October 2013 were Shs2.450 trillion against a target Shs2.507 trillion, creating a deficit of Shs56 billion,” acting URA commisioner general Protazio Begumisa told journalists yesterday in Kampala.
However, Mr Begumisa noted that the revenue performance is better compared to the same time the previous year. “We have seen an increase in performance by 19 per cent, translating into about Shs394 billion,” he said.
The October collections show that URA collected Shs623 billion compared to the Shs500 billion collected in the same month last year.
The performance is attributed to surplus earning in taxes such as Value Added Tax and payment of arrears from the power sector
The performance is also attributed to increase in issuance of treasury bills and bonds and growth in excise duty from the telecommunications sub-sector thanks to promotions by the telecommunication companies.
However, breakdown of the Integrated Financial Management System interrupted government payments, leading to delays in the payment of October salaries, which affected collections from PAYE worth Shs5billion. Local excise duty on mobile money also had a Shs3 billion shortfall.