By Immaculate Wanyenze
Despite the slow economic recovery due to the impact of COVID 19, URA has continued to collect a significant amount of revenue, and this performance puts it in a better position to even surpass its target for end of financial year.
In the period July to March, the actual net revenue collections were UGX 15,466.68 billion representing 69.16% of the annual target. A significant growth in revenue of UGX 1,490.41 billion (10.66%) was registered compared to the same period in the FY 2020/22.
John Musinguzi, the Commissioner General emphasized the surpluses in March and April –a sign of revenue recovery in remaining months of the financial year. The net collections in March were UGX 1.833 billion against a target of UGX 1.823 billion registering a surplus of UGX 9.82 billion. The same trend has been maintained for April, that registered revenue of UGX 1. 796 billion against the target of 1.576 billion and posting a surplus of UGX 219 billion.
In the first nine months, despite the shortfall in domestic taxes, significant growth in revenue of UGX 9,484.62 billion was registered against a target of UGX 10,670.32 billion, registering a growth of UGX 816.22 billion (9.42%).
Major contributions were also registered in direct and indirect domestic taxes. Direct domestic taxes contributed UGX 4,907.6 billion while indirect domestic taxes contributed UGX 3,602.86 billion.
Other major surpluses were registered in PAYE that has continuously contributed the most to direct domestic taxes followed by casino tax.
On the other hand, customs collections were UGX 6,255 billion against a target of UGX 6,191 billion posting a surplus of UGX 64.49 billion. The performance was mainly attributed to growth in vatable goods and increase in fuel volumes attributed to the increase in petrol imports by 0.5%(3.89 million litres).
In the period July to March 2022, the top 5 sectors were Wholesale and retail, Manufacturing, Financial activities, Information& Communication and Public Administration and defense. These generated 74.48% of the total revenue collected.
As we count down to June, Mr. Musinguzi highlighted initiatives to widen the tax base and influence compliance as; expansion of the tax register, arrears management, customs enforcement and Tax investigations. The other measures will include; prosecution & Litigation, Debt collection and enforcement on Digital Tax Stamps(DTS) and Electronic Fiscal Receipting &Invoicing Solution(EFRIS).
He also encouraged taxpayers to collaborate with URA especially in the remaining period to collect the balance of 5.9 trillion and save the Government for external borrowing.
“I take this opportunity to rally all of us in this effort of building our nation to work so hard in these last two months of financial year and rise to the challenge of collecting enough revenue,” he emphasized.
