The Uganda Revenue Authority (URA) has revealed that it is on track to surpass its tax collection target for the 2024/2025 financial year, thanks to improved performance over the last 10 months.
Speaking during a local radio interview, URA Commissioner General John Musinguzi Rujoki expressed confidence that the tax body would exceed the UGX 31.574 trillion target set by Parliament to support the government’s UGX 72 trillion national budget.
“With the figures we have already collected, and with two more months to go, we are optimistic that we shall surpass our annual target,” Musinguzi said.
Looking ahead, the URA has been tasked with raising UGX 34 trillion in the upcoming 2025/2026 fiscal year. Musinguzi stated that the goal is achievable if ongoing efforts to close loopholes in tax collection and curb tax evasion are sustained.
One of URA’s focus areas, he noted, is strengthening compliance and improving efficiency in the importation sector, where dishonest practices have led to revenue loss.
“We are tightening regulations and improving monitoring of importers to ensure transparency and accountability,” he added.
URA’s strong performance comes as the government intensifies its domestic revenue mobilization strategy to reduce reliance on borrowing and external aid.
In the 2023/2024 fiscal year, the Uganda Revenue Authority (URA) faced several challenges in tax collection but also recorded notable achievements. A significant challenge was the persistent issue of tax evasion and non-compliance among certain sectors, which hindered optimal revenue collection.
The large informal sector in Uganda posed difficulties in broadening the tax base, as many businesses operated outside the formal tax system. While URA has made strides in digitization, there were still technological gaps that affected efficient tax administration and compliance monitoring.
However, despite the challenges, URA managed to collect substantial revenue, contributing significantly to the national budget. URA enhanced its digital platforms, making tax processes more accessible and efficient for taxpayers.
There was an increased focus on taxpayer education and engagement, leading to improved compliance and awareness.
These efforts laid a foundation for URA’s optimistic outlook for the 2024/2025 fiscal year, where they anticipate surpassing their revenue targets.