Recent innovations implemented by the Uganda Revenue Authority (URA) have resulted in a significant increase in daily revenue collections at border points, rising from Shs26 billion to Shs40 billion. Mr. Ibrahim Bbosa, the assistant commissioner of corporate affairs, attributes this growth to the introduction of non-intrusive inspection scanners, which have expedited the clearance process for goods, consequently boosting the volume of goods cleared.
The utilization of non-intrusive inspection scanners marks a pivotal advancement in URA’s operations, allowing for the swift and efficient clearance of goods. Mr. Bbosa emphasizes that with all the necessary documents in order, goods can now be cleared within a mere 30 minutes. Furthermore, the implementation of the authorized economic operator’s program has incentivized traders to adhere to tax regulations, ensuring the accurate declaration of taxes for goods in transit.
Additionally, electronic cargo tracking services have been introduced for goods in transit to destinations like the Democratic Republic of Congo (DRC) and South Sudan. Mr. Abel Kagumire, the URA commissioner of domestic taxes, highlights the positive impact of these measures on revenue generation. Since the inception of cargo tracking services in 2021, URA has observed a consistent increase in daily revenue.
Mr. Kagumire underscores the importance of compliance with tax regulations, particularly in transit destinations like the DRC. He notes that without a Tax Identification Number (TIN) in the DRC, cargo cannot be transported into the country. This stringent enforcement ensures that goods destined for the DRC remain solely for that market, preventing illicit activities such as smuggling.
Historically, smugglers have exploited loopholes in the transit system, claiming to export goods to neighboring countries only to bring them back into Uganda through informal channels. Mr. Kagumire cites examples of commodities like cigarettes, cooking oil, and fuel, which were purportedly destined for South Sudan but were instead diverted back into Uganda through illicit means.
To address these challenges, URA has implemented robust measures to curb smuggling activities and ensure the integrity of the transit system. By leveraging technological advancements and enforcing stringent regulations, URA aims to foster transparency, compliance, and efficiency in cross-border trade, ultimately contributing to enhanced revenue collection and economic development.
