Uganda tax revenue collection up 15 per cent - CNBC Africa

Uganda tax revenue collection up 15 per cent

East Africa

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Overall net revenue collections for the financial year were at 7.1 trillion Uganda shillings from a target of 7.28 trillion Ugandan shillings.

“What drove revenue collection this year was a number of sectors that performed quite well. The sectors of transport, manufacturing, retail and wholesale, storage and communication performed above target so we saw that the VAT from these sectors performed very well,” URA commissioner general Allen Kagina told CNBC Africa on Thursday.

“In the domestic taxes collection that’s where we saw most growth, but of course international trade did underperform and we found this is the same picture in all the East African countries.”

Domestic tax collections were up by 23.1 per cent but international trade collections were up only 4.5 per cent.

“There’s very little one can do about international trade taxes because these are a factor of international trade and the global economy. We saw, for example, that volumes of fuel products went down, and we import all our fuel and that’s what drives business here,” Kagina explained.

The URA plans to improve the information exchange between Uganda its neighbouring countries on valuation and classification of goods. The revenue authority is also enhancing capacity building of staff to improve awareness of global trends.

Uganda’s exports were stable but had been affected by struggling European markets and other countries experiencing a similar economic slowdown.

The country’s tax payer register was however up 91 per cent.

The increased tax register is attributed to a number of initiatives that the URA put in place to increase tax collection. Mobile stations were set up in rural and semi-rural areas in the country to reach tax payers that were previously unable to be reached, and tax education was also enhanced to increase compliance.

At the beginning of the financial year, the URA had set out to reach a tax collection target of 30 per cent and tax generation initiatives ended up generating more numbers than the revenue authority had anticipated. 

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