By Irene Kabakama
Uganda Revenue Authority has held a meeting with the International Monetary Fund (IMF) Extractive Industries (EI) Revenue Administration and discussed project updates as well as an overview of the recent developments and achievements.
The meeting was aimed at addressing domestic taxes, customs and inter-agency coordination issues.
During the meeting, the Commissioner General, John R. Musinguzi expressed his appreciation for the support given to URA and emphasized the need to identify areas that require attention in the next phase. He called for evaluation on the application of previous support to improve results.
“Other countries are generating significant revenue from the extractive sector and I challenge each one of us to come up with initiatives on how to get more revenue using national resources,” he said.
Musinguzi appreciated the support in some of the audits done, especially in transfer pricing, and emphasized the need to leverage on information sharing between DT and customs.
“We should be more intentional in implementing the training we have received, specifically when it comes to filling out forms, drafting MOUs and accurately capturing data as it enters the system. We should reinforce the areas of focus to avoid disagreements and conflicts due to the generous exemptions granted by the laws related to oil and gas usage,” noted Musinguzi.
Rob Veltri from IMF reported that since the project’s commencement in 2018, there is improvement in revenue administration.
IMF developed a risk matrix that enables URA to develop informed and coordinated compliance improvement plans to mobilize revenue from extractive industries and strengthen customs administration. They also conducted trainings and capacity building sessions to address the skills and specialization required in the sector.
They have also developed a petroleum tax returns form and mineral valuation.
IMF assured URA of their support in assisting customs and domestic tax departments. So far, IMF has trained the team on international financial reporting standards and on audit mentorship for the petroleum division.
