Uganda Revenue Authority Leverages Technology to Boost Tax Compliance

Uganda's tax system is undergoing a digital revolution. The Uganda Revenue Authority (URA), long plagued by cumbersome manual processes, is embracing technology to streamline tax collection and broaden its reach. This tech-driven transformation was announced at the recent annual banks conference in Kampala.

For years, both taxpayers and URA grappled with a paper-heavy tax system, riddled with inefficiencies. Recognizing the transformative potential of technology, URA is rolling out a suite of digital solutions in phases. These include the Electronic Fiscal Receipting and Invoicing System (EFRIS) to ensure transparency, a user-friendly web portal for tax management, and electronic data payment for effortless transactions. Additionally, a digital client ledger will improve record keeping, while a USSD code will allow even those without smartphones to make quick and convenient mobile payments.

John Musinguzi, the Commissioner General of URA, is a vocal champion of this digital shift. "We must leverage technology's power to achieve better tax compliance and financial inclusion," he declared at the conference. "This digital adoption is the new standard."

The anticipated benefits are three-pronged. Firstly, a streamlined and user-friendly system is expected to encourage more consistent tax payment, boosting overall tax compliance. Secondly, by making tax processes more accessible through technology, URA aims to expand the tax base, reaching a wider range of taxpayers. Finally, these user-friendly digital solutions aim to promote financial inclusion, simplifying tax processes for both individuals and businesses and encouraging greater participation in the formal financial system.

URA's digital push signifies a move towards a more efficient and inclusive financial landscape for Uganda. This tech-driven approach promises to simplify tax collection, broaden the tax net, and ultimately contribute to a stronger Ugandan economy.