URA registers Shs11 billion revenue surplus

URA Commissioner General John Rujoki Musinguzi. PHOTO/ FILE

What you need to know:

  • With the expansion of the tax register from currently slightly more than 2.1 million taxpayers to a target of at least 5 million taxpayers in a matter of years, the tax prefect believes it can hit the set revenue target. 

Uganda Revenue Authority (URA) is seemingly reaping the dividends of a fully reopened economy after two financial years of registering revenue deficits due to Covid-induced lockdown.

The drastic measures were intended to suppress the spread of coronavirus, but also affected the revenue mobilisation after crippling most businesses.

According to URA statement issued by the Assistant Commissioner Public and Corporate Affairs, Mr Ibrahim Kibuuka Bbossa, the tax body has registered one of its strongest performances this financial year with a “solid surplus for the month of March and consequently reducing its annual shortfall” which as of half year revenue performance report was at Shs900 billion. 

“URA collected Shs1.834 trillion against a target of Shs1.823 trillion, registering a surplus of Shs11.11 billion and a performance rate of 100.61 per cent,” a statement reads in part.    

As a result of the impressive March revenue collection, the tax prefect in a statement reaffirmed its intention to continue looking at meeting this financial year’s revenue target of Shs22.36 trillion.

With the expansion of the tax register from currently slightly more than 2.1 million taxpayers to a target of at least 5 million taxpayers in a matter of years, the tax prefect believes it can hit the set revenue target. 

Other strategy being implemented to hit the 2021/2022 domestic revenue collection target involves the use of Alternative Dispute Resolution (ADR) to amicably resolve tax disputes with taxpayers instead of wasting time and money in courts.

This will be in addition to stepping up the use of Satellite Technologies, Cargo Tracking Systems, and Non-Intrusive Inspection Technologies to facilitate trade especially at the custom points.

Collections

As of close of March, taxes collected domestically registered a growth of 17 per cent translating into Shs174 billion in comparison to March 2021 last year. Major surpluses were registered in PAYE (Shs38.62 billion) and Corporate tax (Shs25.09 billion). In general Shs1.147trillion against a target of Shs1.171 trillion were collected from domestic taxes. Meanwhile Customs collections were Shs775.06 billion against a target of Shs688.06 billion, posting a performance of 112 per cent and a surplus of Shs87 billion.

Importantly, the Customs revenue collections also grew by slightly more Shs70 billion (9.97 per cent) in March 2022 compared to the same time last year.

Utility

Tax register has grown to 2,172,442 taxpayers, with target being 5 million in the next 2-3 years

Strengthening of Digital Tax Stamps and Electronic Fiscal Receipting and Invoicing Solution (EFRIS) to trace and track products beyond the current eight products of; cigarettes, beers, sodas, water, wines, spirits, sugar and cement to cooking oil, fruit and Vegetable juices, alcoholic and non-alcoholic beverages, plus fermented beverages were added. These solutions have grown the revenue contributions from the VAT and Local Excise Duty tax heads.

Intensification of tax education. So far there is mobile bus and plan to acquire three more is on the agenda to spread tax information in every region of the country. 

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