This was revealed by the tax body’s Commissioner-General, John Rujoki Musinguzi, during the half year revenue press conference at URA’s headquarters in Nakawa on 31 January 2023.
Musinguzi said URA managed to collect sh11.64 trillion against the half year target of sh11.76 trillion. This, he said, represents 99.2% of the period’s targeted revenue collection.
"Whereas there was a slight shortfall of sh94.80b, the general performance was 99.19%. This performance also shows a substantial growth in revenue of sh1,506.83b (14.83%) compared to the same period last Financial Year 2021/22," he said.
During the first half of the 2022/23 financial year, the revenue collection body registered a Gross Domestic Revenue of sh7.47b against the targeted sh7.450b resulting into a surplus of sh19.32b.
Musinguzi attributed the improvement of Gross Domestic Revenues to the improved Pay As You Earn (PAYE) tax collection which he said could have come as a result of bonuses given by employers towards the end of the year (2022), and more compliance from the employers.
"Major surpluses were registered in PAYE (sh225.85b), casino tax (sh29.33b), rental tax (UGX 17.06 billion) and tax on bank interest (sh8.80b)."
The Customs Revenue collections stood at sh4.453b against a target of sh4.563b representing a 97.59% of the targeted revenue.
The improvement in Customs Revenue Collections was attributed to the improved taxes collected from imports, specifically Value Added Tax on imports.
“The surcharge on imports was due to the increase in tax paid by key imported items like; personal motor vehicles by (sh3.69b), worn clothing by (sh2.74b), passenger motor vehicles by (sh0.12b), motorcycles by (sh0.05b) and electric/water heaters by (sh0.01b),” said Musinguzi
The Commissioner-General said the revenue body has put in place measures that he said would help further improve revenue collection in Uganda.
These, he said, include: More tax education and sensitisation of the public, continued skilling of the URA staff, monitoring of their performance, not tolerating corruption at the Authority and the continued roll out of technology and use of data in revenue collection.
Asked about the revenue loss coming as a result of tax exemptions, Musinguzi said Government chose this policy to help investors be able to grow their products and create jobs which would result in better revenue collections. He however clarified that those employed by such companies pay taxes both directly and indirectly.
“Government chose the tax exemption policy to help investors grow their products and create jobs which later pay taxes. People employed in those companies still pay taxes both directly and indirectly,” he said.
He added: “URA’s role in this is to study the tax exemptions and see if they bringing results, and then advise advice Government accordingly. That study is on-going.”
The National Budget for the financial year 2022/23 is sh49.99 trillion, Uganda Revenue’s target for the last half of the financial year is sh25.15 trillion.