Uganda Revenue Authority (URA) has announced a surplus in revenue collections for August, exceeding its target of sh2.3 trillion.
In a statement, URA said the net revenue collection for last month was sh2,345.04b, surpassing the target by sh28.19b, which represents a performance rate of 101.22%.
“The surplus in revenue collection is a testament to the unwavering commitment of taxpayers in meeting their tax obligations and the ongoing reforms in tax administration aimed at streamlining processes and improving revenue collections,” said the statement signed by Robert Kalumba, the URA assistant commissioner for public and corporate affairs.
The domestic revenue collections were sh1.49 trillion against a target of sh1.46 trillion, registering a surplus of sh26.75b. The customs revenue collections were sh928.51b against a target of sh918.19b, posting a surplus of sh10.32b.
Kalumba noted that this marks a 9.96% increase in net revenue compared to August last year, with domestic and customs revenues growing by 11.10% and 10.23%, respectively.
URA’s performance in the first two months of this financial year of 2024/25 (July to August) also shows a surplus of sh168.3b, with a net revenue collection of sh4.58 trillion against a target of sh4.4 trillion. In addition, Kalumba said a growth of 15.19% (sh604.14b) was realised.
“As we strive to mobilise revenue towards our nation’s economic growth, we recognise the invaluable contribution of every citizen in meeting their tax obligations, URA Commissioner General John Musinguzi is quoted as saying in the statement.
“Our success is also a reflection of the unwavering support from our supervisors, the ministry of finance and the strong interest our leaders in the Government have shown in taxation matters. Their guidance and commitment have been instrumental in driving the reforms that continue to enhance our revenue mobilisation efforts,” Musinguzi added.
To support taxpayers with outstanding obligations, the Government has introduced a tax penalty waiver for those with tax arrears from the last financial year.
According to URA, this relief is an opportunity for those businesses with unpaid taxes as at June 30, 2023, to settle their obligations and contribute to the nation’s continued economic progress.
Number of taxpayers
As of May last year, URA’s register had about 3.2 million taxpayers. “Whereas we could be having nine million potential taxpayers, our register now has about 3.2 million people, but it’s an increase from about 1.5 million taxpayers that we had two years ago,” Musinguzi said in May last year.
The URA boss said he looks forward to a time when Uganda’s budget will be fully supported by the taxes collected internally.
URA has already pledged to bolster its tax administration efforts to achieve its revenue target of sh31.98 trillion for this financial year.
The sh72.13 trillion budget for this financial year, which began on July 1, comprises recurrent expenditure of sh18.9 trillion and development expenditure of sh34.7 trillion, with the total amount including statutory expenditure standing at sh72.136 trillion.
President Yoweri Museveni has been calling upon URA to plug gaps in tax collection so that the country can gain financial independence and stop borrowing to finance its budget.