The Uganda Revenue Authority (URA) Commissioner General, John R. Musinguzi (pictured), says the tax body is confident of hitting the revenue collection target of Shs29.7 trillion in Financial Year 2023/24.
Last week, the Minister of Finance, Matia Kasaija unveiled a Shs52.7 Trillion national budget out of which Shs29.7 Trillion is to come from domestic revenues (Shs27.4 Trillion from taxes and 2.3 Trillion for NTRs-Non-Tax Revenue sources). The rest will come from other sources.
Speaking at a Post Budget Engagement held Tuesday at Hotel Africana under the theme “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding & Broadening Services, Digital Transformation & Market Access,” Musinguzi noted that the National Budget for FY 2023/24 presents “us as citizens with the opportunity to contribute Shs29.7 Trillion which is about 56% of the National budget. Comparing it with our contribution in the current FY projected at Shs25.5 Trillion, this is quite a significant jump.”
He says “the task at URA is to bring in more contributors to the tax bracket so that we can distribute the tax burden across a bigger section of our community.”
He revealed that in the last three years, URA has increased the number of taxpayers from 1.7 million to 3.2 million today. He says the tax body is targeting nine million taxpayers in the medium term which is commensurate with Uganda’s population.
“In terms of Tax To GDP, we are at about 13.5%. But with this projected numbers of Ugx 29.7 Trillion, we shall be at about 14.6%. Even that would be below the Sub-Saharan Africa average at 16% and further below the average necessary for real growth,18%,” Musinguzi said, adding that in the last three financial years, revenue has grown between 12% and 15%.
“In absolute numbers, it has been about Shs2.5 Trillion. We are expected to grow our domestic revenue by Shs 4.2 Trillion. Looking at the support and the sacrifice that taxpayers have been making over the years, we are confident of raising up to this high jump,” he said.
He added that URA will continue with sensitization and education of Ugandans about tax matters so as to increase the number of taxpayers and compliance.
He added that the tax body will also use technology to improve compliance.
“We have introduced the USSD code that can be used to access URA services on the go. The code is *285# and it can be used on any mobile handset. Smart or not; all you need is to have money on your mobile money wallet,” he said.
He pledged to reduce on the actions that make taxpayers uncomfortable like agency notices and locking up premises.
“We won’t deviate from the law and our mandate but we would like to use those alternatives only when we must. Let us meet halfway on compliance,” he said, adding: “We want you to hold us accountable on the three core value of Professionalism, Integrity and Patriotism. Where you see any of us lacking in any of the three, please call us out and we shall duly improve. Refuse anything unprofessional and corrupt.”
He urged taxpayers to embrace EFRIS, noting that it guarantees efficiency in record keeping and efficiency in tax reconciliation.
“As a business person, you will also be sure that you are not losing your stock to your workers or other avenues,” he said.
– businessfocus.co.ug
