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URA exceeds August target by UGX27 billion

Peter 17th Sep, 2024 Economy Pedson Mumbere
URA exceeds August target by UGX27 billion

The Uganda Revenue Authority (URA) has reported an impressive performance for August, with revenue collections surpassing the set target.

The total net revenue for the month stood at UGX 2.345 trillion, exceeding the target of UGX 2.316 trillion by UGX 28.19 billion. This achievement represents a performance rate of 101.22%, signalling a strong start to the fiscal year for the tax body.

In August 2024, domestic revenue collections amounted to UGX 1.492 trillion, surpassing the target of UGX1.465 trillion by about UGX 27 billion. On the other hand, customs revenue collections reached UGX928 billion, outperforming the target of UGX918 billion by UGX10.32 billion.

  • This overall growth marks a 9.96% increase in net revenue compared to August 2023. Specifically, domestic revenue collections saw a growth rate of 11%, while customs revenues grew by 10.23%.

This surplus is a result of URA’s concerted efforts to enhance revenue mobilization, complemented by a strong compliance culture among taxpayers. URA Commissioner General John Rujoki Musinguzi acknowledged the support from various stakeholders, highlighting the Ministry of Finance’s crucial role in this achievement.

“As we strive to mobilize revenue towards our nation’s economic growth, we recognize the invaluable contribution of every citizen in meeting their tax obligations. Our success is also a reflection of the unwavering support from our supervisors, the Ministry of Finance, and the strong interest our leaders in the government have shown in taxation matters. Their guidance and commitment have been instrumental in driving the reforms that continue to enhance our revenue mobilization efforts,” said Musinguzi.

  • For this new financial year, URA was handed a record target of about UGX32 trillion, out of a national budget of UGX72 trillion.

URA’s performance in the first two months of the 2024/2025 financial year (July to August 2024) with a cumulative surplus of UGX168.3 billion, has given some hope that the hefty target would be achieved.

The total net revenue collection for the two months was UGX4.582 trillion, exceeding the target of UGX4.44 trillion - representing a growth of 15.2%, or UGX604 billion, compared to the same period last year.

This continued growth is a result of URA’s ongoing tax administration reforms, aimed at streamlining processes and increasing efficiency. These reforms have bolstered revenue collections, allowing URA to meet and surpass its targets consistently.

To further support taxpayers and encourage compliance, the government has introduced a tax penalty waiver for businesses with tax arrears from the previous financial year. This waiver applies to unpaid taxes as of 30th June 2023, providing an opportunity for businesses to settle their obligations without facing penalties.

  • Robert Kalumba, the Assistant Commissioner for Public and Corporate Affairs, emphasized the importance of this initiative in fostering economic progress.
  • “The surplus in revenue collection is a testament to the unwavering commitment of taxpayers in meeting their tax obligations and the ongoing reforms in tax administration aimed at streamlining processes and improving revenue collections. This relief is an opportunity for businesses with unpaid taxes as at 30th June 2023 to settle their obligations and contribute to the nation’s continued economic progress,” said Kalumba.

“URA’s strong performance in August 2024 and the first two months of the financial year is a clear indication of its commitment to enhancing revenue mobilization. The surplus, coupled with growth in both domestic and customs revenues, highlights the effectiveness of the ongoing reforms and the importance of taxpayer compliance in achieving national economic goals. As URA continues to streamline its processes, it is expected that these positive trends will contribute significantly to Uganda’s economic growth in the coming months,’’ Kalumba added.

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