URA closes 2021/22 financial year with Shs704b shortfall
URA Commissioner General John Musinguzi (left) and Commissioner of Domestic Taxes Sarah Chelangat appear before the Finance Committee at Parliament in April. PHOTO | DAVID LUBOWA
Uganda Revenue Authority closed the 2021/22 financial revenue collection of Shs21.6 trillion, a growth of 12.44 percent.
However, this was below target by Shs704b in a year where URA deployed technology such as Electronic Fiscal Receipting and Invoicing System (EFRIS) and the Digital Tax Stamp (DTS) to meet a collection target of Shs22.3 trillion.
The two tools - EFRIS and DTS - to a large extent supported URA to minimise revenue leakages that most companies, have been exploiting to evade taxes. According to the URA tax performance report, URA collected slightly more than Shs21.6 trillion against a target of Shs22.3 trillion.
Mr John Musinguzi, the URA commissioner general, said during the period, revenue collections had grown by 12 per cent, indicating a nominal growth of Shs2.3 trillion compared to the 2020/21 financial year.
“However, the outturn for the year saw a net revenue collection of Shs21.6 trillion, short by Shs704b against a target of Shs22.3trillion,” he said.
During the period, URA noted, improved arrears management, expansion of the tax register to more than 2.5 million taxpayers, enhanced country-wide customs and domestic taxes enforcement initiatives and leveraging alternative dispute resolution and strengthening tax investigation initiatives, contributed to suppression of more than Shs2.5 trillion anticipated revenue loss to just Shs704b.
However, URA indicated an outstanding tax liability of Shs400b due to government remained uncollected during the period.
During the period, domestic taxes collections stood at Shs13.6 trillion against a target of Shs14.6 trillion, registering a deficit of Shs997.48b and a performance rate of 93 per cent.
However, customs collections stood at Shs8.4 trillion against a target of Shs8.1 trillion, posting a surplus of Shs294b and a performance of 103 per cent.
URA also indicated that going forward, focus will be put on consolidating and refining gains scored with adoption of the key technologies such as EFRIS, DTS and the Rental Management System as well as enhancing the Cargo Tracking System and Non-Intrusive Inspection Technologies and full integration of URA Central IT systems for effective trade facilitation and transparency.
