MPs question URA funding demands
URA Commissioner General John Musinguzi (left) and Commissioner of Domestic Taxes Sarah Chelangat appear before the Finance Committee at Parliament on Monday. PHOTO | DAVID LUBOWA
What you need to know:
- Though Mr Musinguzi did not go into details about the money during the Committee sitting, he later told the media that despite the overall funding gap, some of their investments have immediate impact on revenue.
Legislators on Monday interrogated officials from Uganda Revenue Authority (URA) about the funding gaps in the ministerial policy statement for the Financial Year 2022/2023 that they presented before Parliament’s Finance Committee.
The Committee is chaired by Kiboga East MP Keefa Kiwanuka.
In his presentation, Mr John Musinguzi, the Commissioner General for URA, said their (institution’s) budget requirement for the Financial Year 2022/2023 is Shs726 billion with the funding gap estimated at Shs205 billion, an amount which includes budget cuts.
Mr Musinguzi also stated that the process of revenue collection is a complicated one that requires a joint effort.
“It is our prayer that we be given some additional financing support so that we are able to effectively implement the tax administration initiatives that have been lined up and well-articulated in our domestic revenue mobilisation strategy,” he said.
Critical priorities
Some of the critical unfunded priorities for the Financial Year 2022/2023 that were pointed out included a tax academy (land purchase, design and construction) that needs financial backing of Shs35 billion, office accommodation (including in 22 selected customs and enforcement stations) at Shs27 billion and staff welfare and retention initiatives at Shs81 billion, among others.
Mr Paul Omara, the Otuke County MP, asked the Commissioner to give more clarity.
“I would want to find out more information from the Commissioner General because he said if the funding gap of Shs205 billion is not given, this country will forfeit Shs4.3 trillion.”
He added: “Mr chairman, when executives ask for money and they have projected revenue, what we always do is we give them and we hold their feet to the fire.”
Though Mr Musinguzi did not go into details about the money during the Committee sitting, he later told the media that despite the overall funding gap, some of their investments have immediate impact on revenue.
“For example, the tax academy would have a long term impact in skilling the URA resources to be able to match the standards in the market. So, the contribution of tax from the funding gap is not to be realised in a single financial year and that is why with the guidance of the ministry and Parliament today (yesterday), we have agreed on prioritising the most important immediate results,” he stated.
The State Minister for Planning, Mr Amos Lugoloobi, said the funding gap discussion was an interesting debate, which they needed to engage in and commit ways of raising the money.
