Overview:
Uganda targets tax arrears and digital tracking to raise 2.5 trillion shillings, signaling a move toward automation and stricter enforcement in its latest fiscal plan.
KAMPALA, Uganda — The Ministry of Finance is shifting Uganda’s fiscal policy toward an enforcement-led model, targeting 2.54 trillion shillings in revenue through administrative reforms for the 2026-27 financial year.
While Finance Minister Matia Kasaija recently tabled tax proposals totaling 2.3 trillion shillings, internal documents reveal that the government’s broader strategy relies on the Uganda Revenue Authority’s ability to close collection gaps. The combined 4.8 trillion-shilling push represents one of the most ambitious revenue mobilizations in the country’s history.
The strategy, overseen by Finance Ministry Permanent Secretary Ramathan Ggoobi, moves away from a reliance on new levies in favor of technical compliance. A central pillar of this effort is the recovery of 1.21 trillion shillings in tax arrears, focusing on outstanding domestic and customs balances.
Digital integration is also expected to drive growth. The expansion of the Electronic Fiscal Receipting and Invoicing System is projected to generate 320 billion shillings. Furthermore, the rollout of digital tax stamps is expected to bring in 267 billion shillings by addressing under-declaration in the manufacturing and import sectors.
The administrative plan includes several technology-driven interventions:
- 197 billion shillings from enhanced cargo inspection technologies.
- 120 billion shillings from intelligence-led operations in high-risk sectors such as fuel, textiles and cement.
- 115 billion shillings from tighter customs valuation controls.
- 100 billion shillings from the automation of tax processes and third-party data integration.
On the policy side, the 2.3 trillion-shilling target remains focused on consumption. Excise duty adjustments are expected to raise 1.15 trillion shillings, while VAT and income tax reforms are projected to contribute 358.27 billion and 410.3 billion shillings, respectively.
By linking taxpayer records with national identification systems, the URA is attempting to increase economic traceability. However, the simultaneous introduction of consumption taxes and stricter enforcement has prompted concerns regarding inflation and the financial pressure on the informal sector.
The government maintains that these measures are necessary to fund infrastructure and reduce the national debt. The success of the 2026-27 fiscal year will ultimately depend on whether the URA can modernize its systems without disrupting broader economic activity.