With a new financial year nine days away, Uganda Revenue Authority(URA) has highlighted the need for information sharing, taxpayer education, and effective enforcement of compliance if they are to achieve the Shs 25 trillion target.
The remarks were made by John Musinguzi, the URA Commissioner General in his keynote address at the Post Budget Conference 2022 held at Hotel Africana on Monday.
Musinguzi, said internally, they have equally re-committed themselves to be more efficient, transparent and accountable in what they do.
“We are deliberately promoting accountability amongst all our staff guided by the values of patriotism, integrity and professionalism. Our target was Shs 22.4 trillion and we are optimistic that together, we are going to achieve it come June 30th 2022. As of today we are 20.5 trillion, we need only about 2 trillion to finish the year successfully,” he said.
According to Musinguzi, the new budget has several economic recovery opportunities which will benefit businesses that are formalized.
The permanent secretary in the Ministry of Finance, Ramadhan Ggoobi said the government has made changes in the budgeting principles by discarding the incremental principle which has been locking money in areas which are no longer priorities.
“We are committed as a government to making sure businesses recover so that they can be able to give the government taxes, employ people and also make money for themselves. The president told you we are at the entrance of the middle-income status. Some people are wondering if we really are there. Middle income doesn’t mean that your life would change a lot,” he said.
Ggoobi said by projection, the country’s GDP is likely to rise to shs174 trillion by the end of next year, adding that URA should increase revenue mobilisation without constraining businesses.
“We have given URA a task to collect Shs 25.6 trillion. This is the highest amount of tax revenue Uganda has ever collected, and we are collecting it in a very difficult year. We don’t want to see new tax rates falling on the same people already paying taxes,” he said.
He explained that the country is going to borrow Shs 5 trillion internally and Shs 9.3 trillion externally mainly to implement projects. He said nobody is lending governments anymore for budget support.
