Uganda Revenue Authority has fallen short of the targeted 11.063 Trillion in the first 6 months of the financial 2021/2022, failing by UGX 900.81 Billion. This was announced during today’s URA virtual press conference as URA announced its 6 months financial performance.
URA was given a target of 22.363 Trillion by the Ministry of Finance and Economic Planning and URA had target to collect 49% of that money (11.063 Trillion) in the first six months of the financial year with the remaining 51% collected in the next financial year.
The tax collecting body however has managed to collect 45% of the target collections in the first 6 months now short of 55% to be collected in the remaining half.
Information and Communications sector, Electricity, gas, steam and air conditioning supply sector, Real Estate activities and Construction sector are some of the sectors that saw a sharp decline in comparison to 2020/2021 figures, falling by 14.55%, 37.79%, 10.78% and 14.06% respectively.
Revenue from financial activities increased in comparison to 2020/2021 figures which URA attributes to separation of Mobile Money services from telecommunication companies in addition to the streamlining of national payment systems by Bank of Uganda.
Whole sale and retail trade sector contributed 29.42% of the collected revenue, followed by Manufacturing sector with 23.42%, financial activity sector 10%, Information and communications sector 8.55% while public administration contributed 3.75%. These top five sectors accounted for 75% of total revenue collected in 6 months.
Uganda Revenue Authority has put in place attempts to increase revenue generation in the next 6 months to cover the deficit made in the first 6 months so as to achieve the target of 22.363 trillion by June 30th.
Among the measures announced is the Alternative Dispute Resolution (ADR) which is meant to peacefully without court process resolve complaints from tax payers about levied taxes. URA will also strengthen use of smart mechanisms like Digital Stamps and Electronic Fiscal devices.
Enhancing URA client support, increasing tax education, setting up of mobile tax offices and simplifying the key processes are also some of the measures put in place to see URA generate UGX 12.328 Trillion in next half of the financial year.