URA Exceeds Tax Collection Target for Financial Year 2022/23

UGANDA - The Uganda Revenue Authority has presented a reported indicating extra additions in it's tax gathered from Ugandans as per FY 2022/23.

The Commissioner General Mr. John Musinguzi has led a team of URA staff, stakeholders and other CSO's, like CESBAG in reading the report to members of the press on Wednesday in kampala at the headquarters.

According to the report, " FY 2022/23, URA had a net revenue target of UGX 25,151.57 billion which was surpassed and they collected UGX 25,209.05 billion, " thus indicating a remarkable 100.23 per cent performance with a surplus of UGX 57.48 billion.

The Commissioner General informed journalists that over the past five years, there has been a consistent increase in net revenue collections, however, in the fiscal year 2019/20, growth was slower due to the impact of COVID-19.

He included that the most recent data explains that the economy has performed better than expected, with a 5.3% growth in real terms during FY2022/23, compared to 4.6% growth in FY2021/22, according to the latest GDP figures.

"In the fiscal year of 2022/23, the total revenue collected was UGX 16,425.41 billion, surpassing the target of UGX 16,188.51 billion by 101.46 per cent and resulting in a surplus of UGX 236.89 billion. This represents a growth of UGX 2,761.52 billion (20.21 per cent) compared to the previous fiscal year."

Musinguzi added that direct domestic taxes collected exceeded the target with a surplus of UGX 724.62 billion, while Non-tax revenue, including stamp duty and embossing fees, generated a surplus of UGX 65.81 billion. While with indirect domestic taxes, short of the target was registered with a deficit of UGX 553.54 billion.

He also described that the tax administration measures implemented during the FY 2023/24 included are increasing operational hours, improving arrears management, engaging with taxpayers to encourage compliance, utilizing mobile offices, increasing awareness through sensitization efforts, using alternative dispute resolution, implementing compliance initiatives such as audits and vetting, using the information to inform decision-making, conducting tax investigations, implementing a new performance management approach, using technology in custom processes and so on.

Julius Mukunda the Executive Director of Civil Society Budgeting Advocacy Group (CSBAG), on behalf of CSO's and , the stakeholders appreciated URA for hitting the target and requested that URA should continue to widen the tax base as it also covers all porous borders to curb smuggling of goods, that seems a challenge to tax revenue collection in Uganda.