Uganda Revenue Authority (URA) has released its nine-month performance report indicating an actual revenue collection of UGx 15.4 trillion shillings in the three quarters of the FY2021/22 between July 2021 and March 2022, representing 69.16 percent of the annual target.
According to the URA Commissioner General, John Musinguzi Rujoki, in the first nine months of the Financial Year 2021/22, the tax body had a target of 16.5 trillion shillings revenue collections, representing 73.93% of the annual target of 22.3 trillion shillings.
However, they managed to collect Shs. 15.4 Trillion (69.16%) in the nine months of the projected annual revenue, representing a shortfall of about Shs 1.06Tn since they were supposed to collect UGx 16.5Tn.
Musinguzi said that during the period (July 2021 to March 2022), a significant growth in the revenue of over 1.4 trillion shillings which is 10.66% was registered compared to the same period in the financial year 2020/21.
Musinguzi revealed that the domestic revenue collections in the first nine months of the FY 2021/22 were UGX 9,484.62 billion against a target of UGX 10,670.32 billion, registering a growth of UGX 816.22 billion (9.42%) as compared to the same period in FY 2020/21.
However, he revealed that the collections were below the target by UGX 1,185.70 billion.
The direct domestic tax collections were UGX 4,907.64 billion, posting a performance of 94.17%.
The direct tax collections for the period grew by UGX 273.94 billion (5.91%), compared to the same period in the FY 2020/21.
Musinguzi said major surpluses were registered in PAYE (UGX 248.65 billion), casino tax (UGX 14.70 billion) and tax on bank interest (UGX 1.84 billion), while Shortfalls were mainly incurred in corporate tax (UGX 200.81 billion), withholding (UGX 142.35 billion), rental tax (UGX 120.29 billion), and treasury bills (UGX 45.14 billion).
He attributed the shortfalls to COVID-19 restrictions that led to supply chain disruptions, low aggregate demand in the economy, thus reduced profitability.
PAYE contributed the most to direct domestic taxes collections registering a growth of 15.50%, followed by Corporation tax.
Indirect tax collections for the period July to March were UGX 3,602.86 billion.
A growth of UGX 341.90 billion (10.48%) was realized compared to the same period in the FY 2020/21.
Musinguzi further revealed that a major surplus in phone talk time at UGX 43.63 billion was registered.
For the Non-Tax Revenue collections, Musinguzi said they registered UGX 974.11 billion against a target of UGX 1,141.25 billion, posting a shortfall of UGX 167.13 billion and a performance of 85.36%.
On the International trade tax, collections for the period July to March 2022 were UGX 6,255.93 billion against a target of UGX 6,191.44 billion, posting a surplus of UGX 64.49 billion, and a performance of 101.04%.
Musinguzi noted that the Customs tax collections grew by UGX 686.82 billion (12.33%) in July to March of FY 2021/22, in comparison to the same period last year.
He attributed the performance to the growth in vat-able goods by 13.78%(UGX 1,432.55 billion) in period July to March 2022 compared to the same period last year.
“..Also (there was) an increase in fuel volumes by 1.05% (17.49 million litres) compared to July to March 2021. This was due to the increase in petrol imports by 0.5%(3.89 million litres), jet fuel by 53.80%(31.73 million litres), and Kerosene by 33.20%(10.53 million litres),” he said.
During the period July to March FY 2021/22, the top 5 sectors were; Wholesale and retail, Manufacturing, Financial activities, Information & communication and Public administration and defense; and they generated 74.48% of the total revenue.
Majority of the sectors recorded positive growth throughout the nine months, however, significant declines in revenue were registered in some sectors.
Revenue from electricity, gas, steam and air conditioning supply declined by 25.77%; construction declined by 10.32% while a decline of 3.20% was registered under Real estate activities. The decline is attributed to slow recovery of businesses from COVID19.
“As we race towards the end of this financial year in June 2022, we have to collect UGX5.9 Trillion and we are optimistic that we shall meet this target.”
With only two months left to close the FY 2021-22, Musinguzi revealed that they still recognize that the impact of COVID-19, businesses have not fully picked up.
“For this, we want to commend all taxpayers for your consistent fulfillment of your tax obligations. It is because of you that the Government has been able to provide the much-needed social services.”
Musinguzi urged the public to desist from getting involved in different forms of evasion and smuggling because they increase the cost of doing business and lead to loss of business capital.