The Uganda Revenue Authority (URA) recently announced the reappointment of John Rujoki Musinguzi as Commissioner General, a decision made by President Museveni. This confirmation came through a notice issued by the tax collection agency based in Nakawa.
The notice expressed congratulations to Musinguzi on his reappointment, emphasizing the trust and support extended by President Museveni, Finance Minister Matia Kasaija, and the URA board. It underscored a commitment to fiscal integrity and national prosperity.
Musinguzi assumed the role of Commissioner General in 2020, succeeding Doris Akol. During his tenure, the URA achieved significant milestones in revenue collection. In the fiscal year 2022/2023, total revenue collected reached 16.4 trillion, exceeding the target of 16.1 trillion and resulting in a surplus of 236.8 billion.
Under Musinguzi’s leadership, direct domestic taxes surpassed targets, yielding a surplus of 724.62 billion. Additionally, non-tax revenue, including stamp duty and embossing fees, generated a surplus of 65.8 billion. Moreover, Musinguzi oversaw an expansion of the tax base, with registered taxpayers increasing by 882,286, indicating a growth of 33.7%.
| Fiscal Year | Total Revenue Collected | Surplus/Deficit |
|---|---|---|
| 2022/2023 | 16.4 trillion | +236.8 billion |
| Tax Type | Surplus/Deficit |
|---|---|
| Direct Domestic | +724.62 billion |
| Non-Tax Revenue | +65.8 billion |
| Taxpayer Category | Registered Taxpayers |
|---|---|
| Individual | 3,306,151 |
| Non-Individual | 194,143 |
| Total | 3,500,294 |
However, Musinguzi’s tenure faced challenges from entrenched corruption within the URA. A briefing revealed the presence of an organized group, termed as an “octopus organization,” comprising individuals within the URA hierarchy and peripheral roles such as tea girls, cleaners, drivers, and clearing agents. This group operated a corrupt system aimed at self-enrichment through manipulation of URA processes.
President Museveni enlisted Musinguzi to confront this corruption head-on upon his appointment in 2020. Over the past three years, Musinguzi has made significant strides in dismantling this corrupt network, as evidenced by his reappointment.
| Corruption Type | Pre-Musinguzi Situation | Musinguzi’s Action |
|---|---|---|
| Tax Evasion at Borders | Collaboration with traders to evade taxes at border points | Crackdown on smuggling activities |
| False Declarations | Bribery and under-declaration of goods | Vigorous enforcement against false declarations |
| Cars Taxes | Illicit vehicle imports and tax evasion | Stricter scrutiny and recall of illegally imported cars |
| Forged Books | Fabrication of accounting records | Enhanced monitoring and enforcement against book forgery |
| Frustration and Red Tape | Obstruction of digital tax systems | Implementation of technological solutions |
| Tax Arrears Clearance | Bribery for tax reduction | Enhanced anti-corruption measures |
| Godfatherism | Influence peddling and corruption | Defiance against external influence |
| Family Members | Nepotism and favoritism | Crackdown on nepotistic practices |
| Sexual Networks | Exploitation of sexual favors for corrupt deals | Zero-tolerance policy against sexual misconduct |
Musinguzi’s efforts have resulted in tangible improvements in revenue collection and governance within the URA. However, challenges persist, necessitating continued vigilance and reform.
Uganda’s development partners have raised concerns about the country’s tax revenue performance compared to regional counterparts. Despite progress, Uganda’s tax-to-GDP ratio remains below potential. Reforms are crucial to enhancing revenue collection and financing national development priorities.
Musinguzi’s reappointment signals a commitment to advancing these reforms and rooting out corruption within the URA. As Uganda strives for economic growth and development, the integrity and effectiveness of its revenue administration are paramount.
