URA lays down Shs32bn revenue collection marker

The Uganda Revenue Authority (URA) has announced an ambitious target to collect Shs31.98 trillion in revenue for the 2024/25 financial year.

The taxman says this attempt to mop the floor is to ensure that it leaves no effort at funding a substantial portion of the Shs72.136 trillion National Budget.

This endeavour, while challenging, is seen as a necessary step to ensure the provision of critical public services and the implementation of key development projects.

Ms Catherine Donovan, the URA commissioner for legal services, told the Nile Post after East African Community post-Budget Dialogue in Kampala that the ambition is "a daunting task".

"However, it is feasible through working with diverse perspectives including policymakers, traders, business communities, and industry leaders," she said.

Despite the challenges, Donovan expressed confidence in URA's capability to meet this target by enhancing tax administration, expanding the tax base, and improving compliance.

She elaborated on the key priority areas that URA will focus on to achieve this goal, including the introduction of new tax measures and improving efficiency in revenue collection through continuous tax sensitisations.

URA's strategy to meet the revenue target involves a multi-faceted approach.

This includes not only strengthening tax administration but also actively engaging with various stakeholders.

By working closely with policymakers, traders, business communities, and industry leaders, URA aims to foster a collaborative environment that supports effective tax collection and compliance.

The taxman's efforts are geared towards ensuring a significant contribution to the national budget, which is essential for funding critical public services and development projects.

Ms Donovan emphasized the importance of robust tax administration in driving Uganda's economic growth and development.

"URA's commitment to robust tax administration is crucial to Uganda's economic growth and development," she said.

In addition to URA's efforts, the Ministry of Finance, Planning, and Economic Development is also playing a pivotal role in this initiative.

Moses Kaggwa, the director of economic affairs at the Ministry of Finance, also told this publication that they will embrace opportunities to engage in dialogue with the civil society and the wider citizenry to increase participation in policy formulation.

"Increasing participation in policy formulation through dialogue with Civil Society and the wider citizenry is essential for creating inclusive and effective tax policies," Kaggwa noted.

The collaboration between URA and the Ministry of Finance highlights a comprehensive approach to revenue collection and fiscal management.

This joint effort is expected to create a more transparent, efficient, and inclusive tax system that can effectively support Uganda's development goals.

URA's pledge to bolster its tax administration efforts and achieve a revenue target of Shs31.98 trillion is a critical step towards funding a substantial portion of the Shs72.136 trillion budget.

Through strategic measures, stakeholder engagement, and enhanced compliance, URA aims to ensure that Uganda can meet its fiscal objectives and support its economic growth and development.