URA promises to improve tax administration after registering revenue shortfall of Shs 704 billion
The Uganda Revenue Authority(URA) has registered a revenue shortfall of Shs 704 billion for the financial year 2021/22.
In results released on Friday in Kampala, the tax body collected Shs 21.6 trillion against a set target of Shs 22.4 trillion.
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Speaking to the media ,URA Commissioner General, John Musinguzi said despite the outbreak of the Covid-19 pandemic and other global economic crises, the amount collected is the biggest collection in the history of Uganda.
"Ugandan taxpayers have maintained their determination to contribute their fair share of revenue.The revenue grew by 12.44 per cent as compared to collections for financial year 2020/21, which reflects a nominal growth in revenue of Shs 2.3 trillion,"he said.
He explained that the collection was short by Shs 704 billion against the set target.
Musinguzi attributed the growth in revenue performance to measures such as deepened taxpayer education, improved arrears management, further expansion of the tax register (currently at more than 2.5 million taxpayers).
He said there was enhanced country-wide customs and domestic taxes enforcement initiatives, leveraging alternative dispute resolution and strengthening tax investigation initiatives, among others.
"Domestic taxes collected were shs 13.6 trillion against a target of shs 14.6 trillion registering a deficit of Shs 997 billion and a performance rate of 93.20 per cent,"he said.
Musinguzi said taxpayers contributed Shs 1.5 trillion (12.52 per cent) more by way of domestic taxes compared to the last financial year.
"The customs collections were Shs 8.4 trillion against a target of Shs 8.1 trillion posting a surplus of shs 294 billion and registering a performance of 103.62 per cent. Again, contributed shs 929.25 billion more by way of Customs taxes than they did during the last financial year,"said Musinguzi.
He noted that the revenue mobilisation target for financial year 2022/23 stands at shs 25.15 trillion.
"In this new fiscal financial year, our focus will be on ensuring that we implement administrative and efficiency measures that will assist taxpayers in meeting their obligations, so that we can all work together to lift our country out of the shame of deficits and economic dependence,"he said.
