Speaking at the Uganda Revenue Authority (URA) FY2026/27 Post-Budget Breakfast Dialogue and the launch of the URA Service Charter in Kampala , Finance Minister Henry Musasizi said the target would be achieved through digital transformation, business formalisation, improved coordination among government agencies, tax policy reforms and enhanced taxpayer services.
Musasizi said government projects to collect Shs45.96 trillion in domestic revenue during the 2026/27 financial year, of which Shs40.16 trillion will come from tax revenue, to finance key national development priorities while maintaining fiscal sustainability.
“Government projects to collect 20 per cent of GDP, up from 14 per cent in the medium term. This will be achieved through digital transformation, formalisation, coordination, rationalisation of tax policy and transforming client experience,” Musasizi said.
He said Uganda’s long-term development agenda requires greater reliance on domestic resources rather than external financing.
“The Government remains firmly committed to implementing the second Domestic Revenue Mobilisation Strategy. We recognise that sustained development cannot rely indefinitely on borrowing or development assistance alone,” he said.
Musasizi said the 2026/27 budget prioritises investment in sectors with the greatest potential to transform the economy under the government’s Tenfold Growth Strategy, which aims to grow Uganda into a US$500 billion (about Shs1.8 quadrillion) economy over the medium to long term.
He urged Ugandans to embrace tax compliance, saying paying taxes is both a legal obligation and a contribution to national development.
“To every Ugandan, paying taxes is not merely a legal obligation but a contribution to the collective future of our country. Every compliant taxpayer is a partner in national development,” he said.
The minister also called on the private sector to continue investing, creating jobs, adding value to products, innovating and formalising businesses to support economic growth.
Meanwhile, Uganda Revenue Authority Commissioner General John Musinguzi said the new tax reforms and ongoing digital transformation are expected to raise Uganda’s tax-to-GDP ratio to between 18 and 20 per cent.
Musinguzi said the newly launched URA Service Charter sets out service standards aimed at improving taxpayer services and providing mechanisms for resolving tax disputes without resorting to court.
The dialogue brought together government officials, tax professionals and private sector representatives to discuss implementation of the FY2026/27 national budget and measures to strengthen domestic revenue mobilisation.