URA Achieves Revenue Surplus in Half-Year Performance FY 2024/25
URA Commissioner General John R. Musinguzi expressed gratitude to taxpayers for their patriotism and compliance, which have been instrumental in surpassing the half-year target. He reiterated URA’s commitment to simplifying processes, leveraging technology, and building strategic partnerships to ensure efficient service delivery. “Together, we are building a stronger Uganda. Your contribution enables the government to provide essential social services and foster national development,” Musinguzi emphasized. The first-half performance demonstrates URA’s resilience and efficiency in revenue mobilization, even amidst economic challenges.
By John Kusolo
On 8th January 2025, the Uganda Revenue Authority (URA) Commissioner General, John R. Musinguzi, presented a detailed report on the revenue performance for the first half of the Financial Year (FY) 2024/25. The press briefing, held at URA Headquarters in Nakawa, highlighted the Authority's achievements, key administrative measures, and the role of taxpayers in fostering national development.
URA was tasked with collecting a net revenue target of UGX 31,369.16 billion for FY 2024/25. Of this, UGX 14,926.85 billion (48%) was to be collected during the first half (July-December 2024), while UGX 16,442.32 billion (52%) is set for the second half (January-June 2025). URA exceeded its target for the first half by collecting UGX 15,248.99 billion, achieving a surplus of UGX 322 billion and registering a performance rate of 102.16%. This represents a growth of UGX 2,112.25 billion (16.08%) compared to the same period in FY 2023/24.
This outstanding performance was attributed to Uganda's stable and resilient economy, enhanced administrative measures, and the commitment of patriotic taxpayers.
Breakdown of Revenue Performance
Domestic Tax Revenue Domestic tax collections amounted to UGX 10,131.57 billion, surpassing the target of UGX 9,874.50 billion by UGX 257.06 billion. This represented a performance rate of 102.60% and a growth of UGX 1,322.57 billion (15.01%) compared to the same period in FY 2023/24. The notable surplus reflects the effectiveness of compliance measures and taxpayer education.
International trade tax collections reached UGX 5,426.46 billion, representing a performance rate of 99.48%. While this fell slightly short of the UGX 5,454.72 billion target by UGX 28.26 billion, it showed significant growth of UGX 780.06 billion (16.79%) compared to the previous fiscal year. This performance was bolstered by robust enforcement operations and improved border management.
The positive revenue performance during the first half of FY 2024/25 can be attributed to several factors:
Enhanced Administrative Measures. Strengthened compliance initiatives.
Targeted arrears management.
Taxpayer education and sensitization.
Sector-based compliance management.
Use of technology, data analytics, and tax investigations.
Improved Compliance Processes
Introduction of prefilled returns for rental tax and local excise duty, reducing costs and time for taxpayers.
Intensified field activities and continuous taxpayer engagements drove higher remittances.
Expansion of the Tax Base
Over 420,183 new taxpayers were added to the register, contributing UGX 59.01 billion in revenue during the reporting period.
Government Policy Implementation
The Income Tax Waiver under Section 47A of the Tax Procedures Code Act enabled the collection of UGX 261.98 billion in principal tax while waiving penalties and interest.
Enforcement Interventions
Customs enforcement operations recovered UGX 38 billion from 9,303 seizures.
Administrative Achievements
The URA implemented several initiatives to enhance compliance and revenue collection during the reporting period:
Legal Services and Board Affairs (LSBA): Recorded collections of UGX 86.067 billion in December 2024, with Alternative Dispute Resolution (ADR) contributing UGX 55.25 billion.
Tax Base Growth: Simplified Tax Identification Number (TIN) acquisition processes, leveraging third-party information and intensified field engagements.
Risk Management: Improved mechanisms to identify and address potential revenue leakages.
Outlook for the Second Half of FY 2024/25
URA is confident about achieving its target of UGX 16,442.32 billion for the second half of the fiscal year. The Authority plans to sustain its momentum through:
Strengthened tax administration and compliance. Enhanced stakeholder engagements and taxpayer education.
Implementation of a client-centric approach. Improved border management and science investigations.
Tackling corruption and integrity issues among staff and tax agents.
URA Commissioner General John R. Musinguzi expressed gratitude to taxpayers for their patriotism and compliance, which have been instrumental in surpassing the half-year target. He reiterated URA’s commitment to simplifying processes, leveraging technology, and building strategic partnerships to ensure efficient service delivery.
“Together, we are building a stronger Uganda. Your contribution enables the government to provide essential social services and foster national development,” Musinguzi emphasized.
The first-half performance demonstrates URA’s resilience and efficiency in revenue mobilization, even amidst economic challenges. With deliberate strategies and concerted efforts from all stakeholders, the annual revenue target for FY 2024/25 remains achievable.
