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URA registers 9.57% growth in first quarter

 


Since the outbreak of the COVID 19, businesses in Uganda have suffered loss of revenue and had disruption of supplies however, this has not blurred the mandate of the taxman who needs to grow Uganda ’s GDP ratio to at least 20%. 

URA collected net revenue of UGX 4,459.76 billion posting a growth of 9.57 percent in comparison to the FY 2020/21. In nominal terms, this reflected a growth in revenue of UGX 389.47 billion. However, the outturn of the first quarter was short of UGX 499.49 Billion having collected net revenue of UGX 4.46 Trillion against a target of 4.96 Trillion.

According to John Musinguzi, the Commissioner General Musinguzi, the growth of revenue performance for the first quarter is attributed to measures like arrears management which resulted into a revenue recovery of UGX. 322.63 Billion and cargo management which led to a revenue gain of UGX. 11.51 Billion. These supplemented collections from normal flows.

The financial sector contributed UGX 353.66 billion to the quarterly collections while the information and technology sector contributed UGX 338.36 billion representing 2.65%. The other sectors which contributed fairly to the revenue basket are public administration, gaming, Water supply, sewerage, waste management and remediation, Mining and Quarrying sector among others.

Other major surpluses were registered in PAYE that has continuously contributed the most to direct domestic taxes. Value Added Tax and Withholding tax followed in the second and third position respectively. 

On the other hand, customs collections were shs. 1,866.18 billion against a target of 1,972.72 billion, posting a growth of shs. 152.14 billion.
The revenue shortfalls according to the Commissioner General are majorly attributed to the COVID-19 pandemic effects on businesses.
“The decline is partly explained by continued Government restriction on some sectors which has affected the supply chains and disrupted the trade market operations,” he explained. 

With the shortfall, the C.G unveiled a number of key strategic measures the authority will embark on to ensure the target is achieved. These include; the Alternative dispute resolution which is aimed amicable settlement of tax disputes with taxpayers. This initiative has so far yielded UGX 365 billion in the FY 2020/21.

URA is also counting on the smart business initiatives of Electronic Fiscal Receipting and Invoicing Solution (EFRIS) and Digital Tax Stamps (DTS) to bring in more revenue. For example, the scope of DTS is expected to widen to include cooking oil, fruit and vegetable juices, non-alcoholic, alcoholic and other fermented products. Previously, the stamps were affixed only on Cigarettes, beers, sodas, water, wines, spirits and sugar. The DTS initiative added a boost to the Excise Duty collections by aiding the enforcement and tracking of locally manufactured and imported goods.

URA will revamp its contact center to operate through day and night to ensure that taxpayers are guided through their obligations and inquiries. A WhatsApp number in now readily available on 0772140000 to ease services and queries of clients.

URA Media team.