Uganda Revenue Authority (URA) registered a revenue shortfall of UGX 951.32 billion in the first 6 months of the current 2021/22 financial year.
URA was given a revenue target, by the Ministry of Finance, Planning and Economic Development, of UGX 22.363.51 trillion which is 16.10% (UGX 3,100.51) higher than the actual revenue collection from the last financial year.
Addressing journalists in Kampala on Wednesday, 02 February 2022, John Musinguzi Rujoki, the URA Commissioner General, announced that the net revenue collections for the first 6 months of this FY 2021/22 were UGX 10.163.09 trillion against a target of UGX 11.063.90 trillion, representing 45.44% of the annual target.
“In this period, domestic tax revenue collections were UGX 6.229.62 trillion against a target of UGX 7.180.94 trillion, registering a shortfall of UGX 951.32 trillion, and performance of 86.75%,” he said.
Musinguzi said customs tax collections in the first 6 months of the FY 2021/22 were UGX 4.076.18 trillion against a target of UGX 4.102.51 trillion, posting a shortfall of UGX 26.33 billion, and performance of 99.36%.
During the period July to December FY 2021/22, 75.46% of the revenue was generated from the top 5 sectors.
These are: the wholesale and retail trade sector which had the most significant contribution, amounting to UGX 3.031.01 trillion (29.41%); manufacturing sector followed with a contribution of UGX 2.413.36 trillion (23.42%).
The financial activity sector contributed UGX 1.064.43 trillion (10.33%), Information and communication sector contributed UGX 880.97 Bn (8.55%) while public Administration contributed 3.75%.
Customs tax collections were UGX 4.076.18 trillion against a target of UGX 4.102.51 trillion, posting a shortfall of UGX 26.33 Bn, and performance of 99.36%.
Nevertheless, Musinguzi said a year to year growth of UGX 389.78 Bn (10.57%) was realized this year compared to the same period last FY.
“The growth of revenue from financial activities is attributed to contributions by mobile commerce due to gazetted regulations by Bank of Uganda’s directive to all telecom companies to separate financial services from telecom services,” he said.
However there was a decline in revenue collection from the following sectors;-Information and communication declined by 14.55%; Electricity, gas, steam and air conditioning supply by 37.79%, real estate activities by 10.78% and construction sector by 14.06%