There is a highly likelihood that Uganda Revenue Authority (URA) will meet this year’s target of UGX. 25 trillion after recording a surplus collection of UGX.14 billion for the month of January 2023.
Ibrahim Bbosa, the Assistant Commissioner of Corporate and Public Affairs at URA stressed that this is an indicator that the taxman will hit the UGX. 25 trillion target for this year.
The UGX 14 billion surplus helped to mitigate the shortfall that was registered in the first half of the financial year 2022/2023 from UGX. 94.6 billion to UGX. 80.6 billion.
URA’s month’s total net collections amounted to UGX. 2.093 trillion, in comparison with a target of UGX. 2.078 trillion set by the Ministry of Finance, Planning and Economic Development, showing a surplus of UGX. 14 billion.
Domestic taxes superceded the target set by the taxman, raising UGX. 1.359 trillion during the month while the target was UGX. 1.344 trillion.
According to URA data, most of these surpluses were generated from direct taxes, that is to say; Pay-as-you-earn, Rental income tax and Casino tax which all surpassed their targets.
It should be noted that this financial year, URA is tasked by the Finance Ministry to collect UGX. 25,151.57 trillion, which accounts for 52.3% of the total national budget.
Increases in surpluses according to Bbosa, are attributed to the revenue generated from heightened activities to exploit Uganda’s vast oil and gas reserves, coupled with the re-opening of the economy post Covid-19.
Also vital to note, the target for July to December 2022 was UGX. 11.765 trillion but the net revenue collected during the period was UGX. 11.670 trillion.
However, the taxman will be on high alert to make sure that mistakes in tax collection like those witnessed in the last half are not repeated, for example its failure to collect UGX. 340 billion taxes from the gold trading sector. The tax body will also be on high alert to net entities which deliberately evade paying taxes.
However, in this second half, URA is expected to collect UGX. 13.482 trillion plus the UGX. 94 billion to cover the deficit from the first half, if they are to hit the year’s target of UGX. 25.152 trillion.
John Musinguzi, the URA Commissioner General expressed optimism that the tax collection body will meet the ministry’s target, due to the fact that factors affecting the country’s economy will favor tax collection, something that will be exploited by the body’s technical people.
Musinguzi says they hope collections continue improving, though in this half year they have to collect more so as to meet the target which was already higher than that for the first six months of the financial year.
URA has instituted several strategies to ensure enhanced taxed collections like tax education and sensitisation outreaches, including the URA Mobile Tax Office.
Besides, there has been a continued roll-out of technology and use of data in revenue collection like the Electronic Fiscal Receipting and Invoicing System to more businesses, regular skilling of staff, stakeholder collaborations and engagements in addition to the implementation of performance management and integrity enhancements.
Last month URA also launched a new client relationship management system (CRM) tool, which will help improve its client dialogue, build a high-performing organisation and enhance accountability and integrity.
Musinguzi stressed that the initiative will enhance the entity’s social responsiveness and perpetuate more interaction with the public, something that would empower the citizenry to hold URA accountable for its set targets.
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