URA Launches Enhanced Tax Payment Services on MTN MoMo to Boost Digital Compliance

The Uganda Revenue Authority (URA), in partnership with MTN Uganda and MTN MoMo, has officially launched enhanced URA tax payment services on MTN MoMo, marking a major milestone in Uganda’s drive toward a digital, efficient, and inclusive tax system.

The launch event was held on Thursday evening at the Sheraton Hotel, Kampala, bringing together senior government officials, fintech leaders, and private sector stakeholders.

Speaking at the launch, URA Commissioner General John R. Musinguzi described the enhancement as a significant step in modernising tax administration. “I am extremely delighted to join this great gathering this evening. The launch of the enhanced URA tax payment services on MTN MoMo is a milestone that reflects our shared commitment to building a more efficient, inclusive, and modern tax system for Uganda,” Musinguzi said.

He noted that the upgraded platform now supports both PRN and non-PRN tax services, including high-volume transactions, overcoming previous system limitations. “Today’s upgrade goes beyond what was previously possible. It translates into faster processing, greater reliability, and enhanced convenience for taxpayers—whether large corporations, small businesses, or individual citizens,” he added.

Strong Revenue Performance

Musinguzi revealed that URA’s strong performance in the first half of the 2025/26 financial year demonstrates the impact of technology-driven reforms. “URA collected UGX 15.25 trillion in net revenue, surpassing the half-year target of UGX 14.93 trillion. This represents 102 percent performance and a surplus of UGX 322 billion,” he said.

He expressed confidence that the enhanced MoMo platform would further strengthen collections in the remaining quarters of the financial year.

Fintech and Expanding the Tax Base

The Commissioner General emphasised the role of fintech in broadening Uganda’s tax base, especially among micro, small, and medium enterprises. “By shifting transactions from cash to digital platforms, economic activity becomes visible and traceable. Informal traders can be identified and gradually integrated into the tax net,” Musinguzi said.

He added that digital payments reduce leakages, lower enforcement costs, and create reliable audit trails that improve compliance.

Government Commitment to Digital Economy

Representing the Ministry of Finance, Godfrey Semugooma, the Accountant General, reaffirmed government support for digital transformation. “We will, as government, continue to invest in digital literacy, consumer protection, and cyber security to ensure that all Ugandans can participate, willfully, safely, and confidently in the digital economy,” Semugooma said.

He described the initiative as a “ground-breaking innovation” that will significantly improve revenue collection.

MTN MoMo: Driving a Cash-Light Society

MTN MoMo Uganda Managing Director Richard Yego said the integration aligns with MTN’s ambition of promoting a cash-light economy.

“With this innovation, revenue collection will be done seamlessly, both with PRN and non-PRN payments. We are bringing simplicity into the hands of the customers we serve as we relentlessly pursue a cash-light society,” Yego said.

He added that the service places modern financial tools directly in the hands of millions of users. “Today, we are proud to place this simplicity directly in the hands of over 14 million customers and thousands of small businesses,” he noted.

How the Service Works

Taxpayers can now pay taxes instantly using the new URA USSD code *165*18#, which is free of charge, works on any phone, and offers a direct payment route from MTN MoMo to URA and the bank. URA clarified that the existing *285# code will remain in use for other tax-related services.