URA unveils strategy to hit Shs32 trillion revenue target for FY2024/25

The Commissioner General of the Uganda Revenue Authority (URA), Mr John Rujoki Musinguzi, has said they are adopting various measures that will enable them to hit the new tax collection target of 32 trillion UGX for the next financial year.

The comprehensive plan includes measures such as strengthening tax administration and compliance, engaging with stakeholders, providing extensive education, improving staff accountability through performance management, implementing digital stamps and EFRIS, among others.

“To achieve the target, there is a need to expand the tax base through the integration of systems with other government agencies which will provide data and transparency in revenue mobilization,” explained Musinguzi during a TV talkshow.

He further accentuated that Uganda’s tax system is based on voluntary compliance, and there have been no tax rate increments by parliament for the last 4 years.

With URA’s digital transformation and new systems such as EFRIS, DTS, and non-intrusive scanners, achieving the target is not a far-fetched dream.

“The growth in tax revenue is attributed to developing systems and integrations that provide an informed view,” Musinguzi said, before adding that URA is now focusing on minimizing revenue leakages by punishing and prosecuting those involved in corruption.

“This is an avenue that is bound to improve revenue collection as we streamline our processes,” he asserted.

Out of the UGX 72.1 trillion budget, URA is tasked with collecting UGX 32 trillion, with UGX 29.366 trillion expected from domestic revenue and UGX 2.616 trillion from Non-Tax Revenue (NTR) collected by various Ministries, Departments, and Agencies (MDAs).

In the national budget for the ending financial year (2023/2024), the revenue collection target was sh29.6 trillion.

During the budget speech at Kololo Independence Grounds on Thursday, Finance Minister Matia Kasaija urged Ugandans to fulfill their tax obligations, despite some tax increases approved by Parliament affecting common commodities.

“Madam Speaker, I call upon all of you colleagues and fellow Ugandans to support URA and other revenue-collecting institutions to mobilize the necessary revenue. We must raise more revenue and reduce reliance on borrowing and external grants,” Kasaija stated.