In a significant milestone for Uganda’s fiscal performance, the Uganda Revenue Authority (URA) has announced an exceptional revenue collection surplus of UGX 322 billion for the half-year period from July to December 2024.
This achievement marks a 102.16% performance rate against the target of UGX 14,926.85 billion, bringing the total collections to UGX 15,248.99 billion.
The URA’s report highlights robust growth in revenue collection, with a 16.08% increase compared to the same period in the previous fiscal year.
Domestic revenue contributed UGX 10,131.57 billion, exceeding its target by UGX 257.06 billion and achieving a 102.60% performance rate.
This represents a 15.01% growth from the corresponding period in FY 2023/24.
International trade taxes also posted a significant growth of 16.79%, collecting UGX 5,426.46 billion. However, this fell slightly short of the target by UGX 28.26 billion, resulting in a performance rate of 99.48%.
Tax refunds, a crucial element of the revenue ecosystem, stood at UGX 346.37 billion, an improvement compared to the expected UGX 402.38 billion, demonstrating the URA’s efficiency in processing taxpayer obligations.
Several administrative and policy measures underpinned this performance. Enhanced compliance initiatives, intensified taxpayer training, and the use of technology to simplify processes have been key drivers.
The introduction of pre-filled returns for rental tax and local excise duty has significantly reduced compliance costs and turnaround times for taxpayers.
The expansion of the taxpayer register added 420,183 new entries, bringing the total to 4.88 million taxpayers. This growth is attributed to improved access to third-party data and streamlined Taxpayer Identification Number (TIN) acquisition processes.
Revenue from these new taxpayers amounted to UGX 59.01 billion during the half-year period.
Additionally, customs enforcement operations recovered UGX 38 billion through 9,303 seizures, including both dutiable and non-dutiable goods.
The Legal Services and Board Affairs Department contributed UGX 86.067 billion, with Alternative Dispute Resolution (ADR) alone accounting for UGX 55.25 billion.
The URA’s target for the second half of FY 2024/25 is UGX 16,442.32 billion, representing 52% of the annual target. To achieve this, the URA plans to implement strengthened tax administration and compliance measures, enhance data analytics, improve border management, and tackle corruption and integrity issues.
Stakeholder engagement and tax education will also play a pivotal role, ensuring a broader reach and fostering voluntary compliance among taxpayers.
John R. Musinguzi, the URA’s Commissioner General, expressed gratitude to taxpayers and stakeholders for their support. He emphasized the importance of collaborative efforts to achieve the annual revenue target, promising continued investment in efficient systems and strategic partnerships.
“We owe this success to the patriotism of our taxpayers who have contributed their fair share. Together, we can continue to build a stronger Uganda,” Musinguzi stated.
With a strategic approach and unwavering commitment, the URA’s performance in the first half of FY 2024/25 sets a strong precedent for meeting its annual goals.
This success not only boosts government revenue but also reinforces the URA’s role in supporting Uganda’s development through effective tax administration.
