Uganda Revenue Authority(URA), has registered one of its strongest performances this financial year, recording a solid surplus for the month of March and reducing its annual shortfall.
The tax body collected UGX 1.83 trillion against a target of UGX 1.823 trillio, with a surplus of UGX 11.11 billion and a performance rate of 100.61%.
According to URA, the Domestic revenue collections were UGX 1.14 trillion against a target of UGX 1.171, registering a growth of 17.96% (UGX 174.70 billion) in comparison to March 2021. Major surpluses were registered in PAYE (UGX 38.62 billion) and Corporate tax (UGX 25.09 billion).
Customs collections were UGX 775.06 billion against a target of UGX 688.06 billion, posting a performance of 112.64% and a surplus of UGX 87.00 billion.
The Customs revenue collections also grew by UGX 70.27 billion (9.97 %) in March 2022 compared to March 2021.
The Significant surpluses were on VAT on imports by (UGX 49.57 billion), Petroleum duty by (UGX 23.23 billion), imports duty by (UGX 8.88 billion) and excise duty by (UGX 5.57 billion).
According to Ibrahim Kibuuka Bbossa, the Assistant Commissioner Public and Corporate Affairs at URA, this was partly due to the re-opening of the economy, where some of the previously closed sectors and their associated value chains were able to contribute to the revenue basket.
Bbossa noted that the tax body has continued to strengthen and implement her revenue enhancement mechanisms aimed at meeting this Financial year’s set revenue target of UGX 22.36 Trillion.
“These include; Tax register expansion- Our register has grown to 2,172,442 taxpayers, and we are targeting to have at least 5 million taxpayers on our register, Strengthening smart business solutions of Digital Tax Stamps and Electronic Fiscal Receipting and Invoicing Solution (EFRIS),” he said.
Bbossa added that URA has implemented approved structures to ensure sustainability and expanded on the traced and tracked products beyond the current eight products of; cigarettes, beers, sodas, water, wines, spirits, sugar and cement, saying cooking oil, fruit and Vegetable juices, alcoholic & non-alcoholic beverages, plus fermented beverages were also added.
Adding, “These solutions have grown the revenue contributions from the VAT and LED tax heads.”
Bbossa also revealed that URA has rolled out some initiatives like growing the Tax Register expansion, adoption of the Alternative Dispute Resolution (ADR) to amicably resolve tax disputes with taxpayers instead of wasting money in courts, in order to cover the deficit.
Adding, “We have strengthened the use of available technology to enhance the taxpayers’ experience and revenue administration. We are stepping up the use of Satellite Technologies, Cargo Tracking Systems, and Non-Intrusive Inspection Technologies to facilitate trade.”
