URA Targets Revenue Growth with Expanded Tax Register

Last Wednesday, John R. Musinguzi, the Commissioner General of the Uganda Revenue Authority (URA), appeared on UBC’s show “Behind the Headlines” along with other panelists. The topic of discussion was the budget for the fiscal year 2024/25, specifically focusing on the budget’s capacity for domestic funding.

The discussion centered on the strategies URA will use to meet the ambitious new target of 32 trillion UGX for the next financial year. Musinguzi emphasized the importance of expanding the tax base by integrating systems with other government agencies. This integration will provide the data and transparency necessary for effective revenue mobilization.

Musinguzi highlighted that Uganda’s tax system relies on voluntary compliance and that there have been no tax rate increases approved by parliament for the past four years. This stability is seen as a foundation for building trust and encouraging compliance among taxpayers.

URA’s ongoing digital transformation and the implementation of new systems, such as the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), the Digital Tax Stamps (DTS), and non-intrusive scanners, are key to achieving the new revenue target. Musinguzi explained that the growth in tax revenue is largely due to these advanced systems and integrations, which offer a more informed and efficient view of the tax landscape.

Additionally, URA is committed to minimizing revenue leakages by taking strict action against corruption. Musinguzi stated that punishing and prosecuting those involved in corrupt practices will significantly improve revenue collection and streamline processes.

He expressed confidence that with these strategies and technological advancements, URA is well-positioned to surpass the revenue target for the next financial year.