URA closes half year with Shs300b surplus

Ms Doris Akol, the URA commissioner general. FILE PHOTO

What you need to know:

  • According to URA collections from international trade had a fair contribution posting a surplus of Shs88.6b dues to an increase in import volumes.
  • VAT collections for the period between July and December 2018 posted a surplus of Shs108b and a growth rate of 17 per cent. This is the first time VAT is performing well in years.

Kampala. With about four and half months left before the end of the 2018/19 financial year, Uganda Revenue Authority (URA) looks set to achieve revenue collection target, considering its current performance.
For the month ended January, URA recorded a surplus of Shs20b, emphasising the tax body’s commitment to end the year on a high note.
Earlier Ms Doris Akol, the URA commissioner general, said they would hit the targets set in the 2018/19 financial year.
The performance is likely to amends to previous deficits of about Shs500b.

URA in a report, indicated it had collected Shs8.1 trillion in the period between July and December 2018 against a target of Shs7.8 trillion.
This indicates that the revenue agency has so far registered a surplus of Shs308b.
URA is expected to collect at east Shs16.3 trillion in the 2018/19 financial year.
In addition, according to the report, there has been a growth in revenue of Shs.1.2 trillion compared to the same period in the 2017/18 financial year.

The improved performance was driven by revenue from direct domestic taxes, which recorded a cumulative performance of Shs2.58 trillion registering a surplus of Shs151.63b.
Other major surpluses were registered in Pay As You Earn (PAYE) and corporation tax. The two registered Shs89.9b and Shs115.59b surplus, respectively.
This is in addition to bonus payments made to employees by some major companies. The collections were also boosted by improved management of specific taxes accrued to government ministries, departments and agencies.

For instance, PAYE collections engineered as a result of focus turned on MDAs performed at 127 per cent in the first half of the financial year, registering a surplus of Shs78.8b. This was further boosted by the upgraded performance of the Integrated Financial Management System which enhanced timely payments and ease of access to government payments.
Arrears recovery initiatives also yielded some benefits over the last half year as evidenced by the Shs36.4 billion recouped from PAYE.