URA bets on digital systems to hit UGX36.7 trillion target

KAMPALA– The Uganda Revenue Authority (URA) is banking on digital systems and intensified compliance efforts to meet an ambitious revenue collection target of Shs36.7 trillion for the financial year ending June 2026. This represents a 17% increase, or an additional Shs5.3 trillion, from the Shs31.3 trillion collected in the previous fiscal year.

URA Commissioner General John Rujoki Musinguzi stated earlier this month that while the new target is achievable, it necessitates improved tax administration and compliance through digital innovations and data-driven enforcement. Speaking during the release of the 2024/25 financial year revenue performance report, Musinguzi attributed recent tax gains, including an additional Shs262.43 billion collected, partly to digital initiatives.

Key digital tools, such as digital tax stamps and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), have been crucial in curbing revenue leakages in excise duty and VAT collections. URA plans to expand the use of these systems, alongside advanced technologies like data analytics, artificial intelligence, and risk-based assessments, to identify potential taxpayers and areas of non-compliance.

“This marks a shift from reactive to predictive tax administration,” Musinguzi said, emphasizing URA’s move toward smarter and more proactive enforcement.

Digital tax stamps have significantly boosted tax compliance in high-risk sectors like alcoholic beverages, helping to remove non-compliant operators and protecting legitimate taxpayers.

President Yoweri Museveni last month acknowledged the role of digital systems in reducing tax non-compliance, citing initiatives like digital tax stamps and EFRIS. However, he stressed that current revenue levels remain insufficient for the country’s development needs. To address this, the government plans to scale up anti-corruption efforts through frequent audits of URA operations and expanded use of digital tools for real-time transaction monitoring.

The URA closed the 2024/25 financial year with an impressive revenue performance, surpassing its target by Shs262.43 billion, marking a 15.86% revenue growth. The authority collected Shs31.63 trillion against a target of Shs31.37 trillion, achieving a performance of over 100.84%.

Despite this, URA will intensify efforts to meet the new 2025/26 targets. The Domestic Revenue Mobilisation Strategy has identified excise taxes as a high-potential area. The digital tax stamps system, managed by SICPA Uganda under URA’s oversight since FY 2019/20, affixes tamper-proof stamps on excisable goods at the production line, allowing real-time tracking.

This has significantly reduced tax evasion and under-reporting, strengthened URA’s ability to combat illicit trade, and enhanced transparency across manufacturing and import sectors.