The Uganda Revenue Authority (URA) has announced a stellar performance in its half-year revenue collection for the fiscal year 2024/25, surpassing its revenue target for the period from July to December 2024. The authority collected Shs 15.25 trillion, exceeding its target of Shs 14.93 trillion by Shs 322 billion, representing a performance rate of 102.16%. This achievement marks a significant milestone, with the growth rate showing a 16.08% increase compared to the same period last year.
In a statement, URA Commissioner General John R. Musinguzi attributed this impressive performance to Uganda’s stable and resilient economic environment, enhanced administrative measures, and, notably, the unwavering cooperation of patriotic taxpayers. He lauded the efforts of both individual taxpayers and businesses in contributing to the country’s economic progress.
“The strong performance is a reflection of a collective effort from all sectors of the economy, the government’s support for businesses, and the dedication of our taxpayers,” said Musinguzi.
“This achievement not only strengthens Uganda’s fiscal position but also provides the government with the resources to fund essential public services and development programs.”
Domestic revenue collections for the period totaled Shs 10.13 trillion, surpassing the target of Shs 9.87 trillion by Shs 257.06 billion. This resulted in a performance rate of 102.60%, reflecting a solid 15.01% growth compared to the same period in the previous fiscal year. International trade tax collections, although slightly falling short of the target, totaled Shs 5.43 trillion, achieving a performance rate of 99.48%. Nevertheless, this sector still posted significant year-on-year growth of 16.79%, amounting to Shs 780.06 billion.
URA’s success was attributed to several strategic initiatives aimed at improving compliance and tax administration. These initiatives included increased taxpayer training, compliance engagements, and the utilization of alternative dispute resolution mechanisms to resolve tax disputes efficiently.
The tax authority also witnessed a surge in the number of taxpayers, with 420,183 new registrations during the period, bringing the total number of taxpayers to 4.88 million.
This expansion of the tax base contributed Shs 59.01 billion in new revenue. Additionally, the implementation of income tax waivers under the Tax Procedures Code Act resulted in collections totaling Shs 261.98 billion. Furthermore, customs enforcement efforts led to the recovery of Shs 38 billion from 9,303 seizures of dutiable and non-dutiable goods.
Legal interventions played a significant role in the revenue boost, contributing Shs 86.07 billion. Of this, Shs 55.25 billion was generated through alternative dispute resolutions, showcasing the effectiveness of the measures in place.
Looking ahead, URA is targeting Shs 16.44 trillion in revenue collection for the second half of the fiscal year, which accounts for 52% of the annual target. To achieve this goal, the authority plans to intensify its efforts in tax administration, improve stakeholder engagement, expand tax education, and strengthen border management.
“We are committed to simplifying the tax process and investing in efficient systems,” Musinguzi said. “We will continue fostering strategic partnerships and driving innovative solutions to sustain Uganda’s economic growth.”
For the fiscal year 2024/25, the URA has set a net revenue target of Shs 31.37 trillion, with Shs 14.93 trillion expected to be collected in the first half of the year and the remaining Shs 16.44 trillion targeted for collection in the second half, from January to June 2025.
Musinguzi emphasized that the authority is confident in meeting the set targets due to the robust strategy in place, which includes improving tax administration, compliance, and stakeholder engagement. The use of data analytics and enhanced risk management strategies will also be key in identifying potential revenue leakages. Moreover, URA is working on fostering a client-centric approach while continuing its efforts to combat corruption and address integrity issues within the tax system.
“None of this would have been possible without the continued support and dedication of our taxpayers. Their contributions are pivotal in the government’s ability to provide essential social services and drive the country’s development forward,” Musinguzi concluded.
As Uganda continues to build a sustainable and resilient economic future, URA’s performance serves as a testament to the strength of collaborative efforts between the government, businesses, and citizens.
Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
