Uganda Government taps Armenian tech firm to modernize 24/7 tax administration

KAMPALA, Uganda — The Uganda Revenue Authority has signed a deal with Armenian tech firm IUnetworks to overhaul its ageing digital infrastructure, a move aimed at making tax compliance as simple as a few taps on a smartphone.

The contract will see the development of a new e-tax platform to replace a system that has been in place since the early 2000s. The goal is to move toward a 24/7, fully automated administration that reduces the need for taxpayers to interact directly with tax officials.

John Musinguzi, the commissioner general of the revenue authority, described the partnership as a historic milestone. He said the new interface would be intuitive and faster, significantly cutting down processing times for businesses and individuals alike.

Chasing the 20 percent target

The upgrade is not just about convenience; it is a central pillar of Uganda’s five-year strategy to increase its tax-to-GDP ratio from 14% to at least 20%. By modernizing online platforms, the government hopes to boost compliance while simultaneously lowering the cost of collecting those taxes.

The initiative follows a period of unexpected fiscal success. In the 2024/25 financial year, net revenue collections hit 31.63 trillion shillings, slightly exceeding government targets. Officials attribute much of this growth to existing digital tools, such as electronic invoicing and digital tax stamps.

International backing

The push for a more sophisticated digital system has received significant backing from the International Monetary Fund. In recent reviews of Uganda’s economic progress, the IMF urged the government to prioritize digitization to ensure sustainable domestic revenue.

Finance Minister Matia Kasaija has signaled his commitment to the project, noting that the new system is essential for accurate revenue declarations and for curbing the informal economy’s traditional methods of evasion.

Armen Papyan, commercial director of IUnetworks, said the firm is fully committed to exceeding expectations. “We shall honor every part of this contract,” he said during the signing ceremony.