An improved economic environment paved way for the taxman’s Shs258 billion revenue surplus in the just-concluded financial year.
During the financial year 2018/19, the economy grew by 6.1 per cent against the projected growth of 6 per cent. This triggered economic growth in some key revenue contributing sectors.
Uganda Revenue Authority (URA) Commissioner General, Ms Doris Akol, believes the economy’s growth is a catalyst for revenue compliance.
Presenting the annual revenue performance under theme: ‘Transparency and Accountability for Effective Service Delivery,’ Ms Akol disclosed that major revenue contributing sectors registered positive growth during the financial year, citing mining and quarrying sector which grew by (17.6 per cent, trade and repairs at 6.6 per cent and construction recording a 5.7 per cent growth. Others were manufacturing (at 4.4 per cent), financial and insurance activities (8.3 per cent) and public administration (10.6 per cent).
“All these contributed to our estimated revenue surplus of Shs258.89 billion,” Mr Akol noted.
Increased import volumes particularly of dry cargo import volumes in shillings grew by 28 per cent during the financial year 2018/19 compared to 16 per cent witnessed previously. Growth in import volumes led to the growth in goods that attracted Value Added Tax on imports, explaining the surplus registered in taxes on imports to the tune of Shs69 billion.
Demand for private sector credit increased to 12 per cent, up from 6.8 per cent in FY 2017/18, Ms Akol said.
Major sectors that registered growth in private sector credit were; mining and quarrying, electricity and water, manufacturing, trade and business services.
“This increased economic activities as reflected in their GDP growth rates, leading to the surplus,” Ms Akol said.
The main drivers that led to the surplus were economic sub-sectors such as transport, storage and communication. Financial intermediaries and Pay As You Earn (PAYE) also registered a surplus of Shs148 billion.