The Auditor General, John Muwanga, has faulted the Uganda Revenue Authority (URA) for failing to collect Shs52.238bn in gold exports, saying this has denied the government revenue for service delivery.
“The exports in 2021/ 22 weighed 30,167,582 and those of 2022/23 were 40,648.2 kilograms, totalling 70,837.91. This translated into US$14,167,582 equivalent to Shs52.238bn that was not collected, contrary to the Mining and Minerals (Export Levy on Refines Gold) Regulations 2023,” read in part the December 2023 Auditor General’s report.
It added: “The uncollected revenue denies Government resources to deliver services. URA explained that an interim order was issued restraining it from enforcing the statutory instrument.”
Uganda Revenue Authority is seeking an additional Shs167bn to recruit 1,278 new staff to improve the Authority’s efficiency.
In 2024/25, URA has been allocated Shs619.989bn of which, Shs253.495bn will go towards payment of wages, Shs321.174bn for non-wage expenditure, while Shs45.320bn will cover development expenditure.
While appearing before the Finance Committee of Parliament, John Musinguzi, URA Commissioner General, blamed the delayed collection of gold taxes on an interim order issued by the Court, halting the collection of this tax until concerns raised by the gold exporters are disposed of.
“Uganda Revenue Authority is doing a structural review to improve the efficiency of the organisation to add on to the number of foot soldiers required to do this noble mandate to plug some of the revenue leakages and this activity hadn’t happened for quite some long period of time,” Musinguzi told the Finance Committee.
He added: “Our proposal is that this recruitment can be spread over time because it would require about Shs167bn.”
In the next Financial Year 2024/25, URA is expected to collect taxes to the tune of Shs29.958Trn, representing a growth of Shs286bn from the current revenue target of Shs29.672bn, that the tax body is expected to collect this year.
However, this figure is subject to change when the final budget is tabled.