In a major move to formalise Uganda’s economy and accelerate digital inclusion, MTN Mobile Money (U) Limited and the Uganda Revenue Authority (URA) have unveiled enhanced digital tax services on the *165# platform. This partnership, officially launched on December 22, 2025, at the Sheraton Kampala Hotel, represents a critical intersection of Fintech innovation and domestic revenue mobilisation.
This is because by integrating comprehensive URA services into the widespread MTN MoMo ecosystem via a dedicated short code, *165*18#, the government is effectively turning every mobile phone in Uganda into a virtual tax office.
Speaking at the launch, Richard Yego, Managing Director, MTN MoMo, said the enhancements reflect MTN MoMo’s long-standing role as a reliable digital payments partner for government services. “MTN MoMo continues to play a critical role in enabling secure, accessible and efficient digital payments across Uganda,” Yego said, adding, “By enhancing URA services on *165*18#, we are making it easier for individuals and businesses to meet their tax obligations anytime, anywhere. This partnership demonstrates our commitment to supporting national development through practical and customer-centric digital solutions.”
It should be noted that for years, the compliance burden, which is the time and cost spent by citizens to pay taxes, has been a significant barrier to Uganda’s economic growth. Long queues at banks and the complexity of manual filings often discouraged small business owners and individuals from participating in the formal economy.
However, the newly enhanced *165*18# menu changes this dynamic by offering:
- Direct Tax Payments: Ugandans can pay Income Tax, VAT, and other duties directly from a MoMo wallet.
- Government Service Fees: MTN MoMo users can seamlessly settle payments for passports, driving permits, and other non-tax revenues.
- Real-Time Confirmation: This includes instant digital receipts that provide taxpayers with immediate proof of payment, reducing disputes and administrative friction.
Uganda’s economy is heavily reliant on Small and Medium Enterprises (SMEs), which contribute approximately 20% to the national GDP and account for 90% of private sector employment. However, a large portion of this sector remains informal.
According to Yego, this partnership fuels Uganda’s economic growth through:
- Lowering Transaction Costs: By eliminating the need for physical travel to URA offices, businesses save significant operational time and money.
- Expanding the Tax Base: Digital ease encourages voluntary compliance. As more citizens contribute to the national treasury, the government can fund critical infrastructure without increasing the tax rate on existing payers.
- Data-Driven Financial Inclusion: Regular tax payments via MoMo create a ‘digital footprint’. This data allows Fintechs and banks to better assess the creditworthiness of SMEs, unlocking access to much-needed business loans.
The URA Commissioner General, John Musinguzi Rujoki, noted that this move is central to the strategy of digitising tax administration to improve transparency. “Our goal is to make tax compliance as simple and convenient as possible for all taxpayers. Enhancing URA services on MTN MoMo brings us closer to the people, reduces compliance barriers and supports our broader strategy to digitize tax administration while improving efficiency and transparency,” Musinguzi said.
He noted that in 2024 alone, Ugandans moved an average of Shs435 billion daily through MTN MoMo. According to Musinguzi, by tapping into this high-velocity digital highway, the URA is aligning with the National Development Plan IV (NDP IV) goals of self-sustaining economic growth.
This enhancement is more than just a menu update; it is a step toward a Cashless Governance model. As Uganda targets a 16% tax-to-GDP ratio, the synergy between Fintech giants like MTN and regulators like URA will be the primary engine of this transformation.
For the everyday Ugandan, the message is clear: compliance is now just a few clicks away.