URA shifts attention to 2023/24 revenue mobilization drive after hitting Shs 25 trillion 2022/23 target

By Our Reporter

The Uganda Revenue Authority (URA) has announced Wednesday Shs 25.15 trillion as revenue mobilized in the 2022–23 fiscal year.

The URAURAmmissioner General said the taxman surpassed its target, representing a remarkable 100.23 percent performance with a surplus of Shs 57.48 billion.

This also means a significant revenue growth of 16.40 percent (UGX 3,551.04 billion) compared to the previous financial year.

Musinguzi attributed the revenue growth to stable and resilient economic performance, enhanced administrative measures, and the cooperation of patriotic taxpayers.

The CG notes that the growth was achieved through increased job creation and a constructive return on investment.

In order to improve administrative procedures, Musinguzi said that a number of measures were implemented.

He said increased operational hours, improving arrears management, engaging with taxpayers to encourage compliance, utilizing mobile offices, increasing awareness through sensitization efforts, using alternative dispute resolution, implementing compliance initiatives such as audits and vetting, using information to inform decision-making, conducting tax investigations, implementing a new performance management approach, and using technology in custom processes are the reasons for improved revenue collection.

“These initiatives resulted in a significant growth rate of 16.40 percent in FY 2022–23,” he said.

He also noted that the regulations put in place in FY 2022–23 encouraged taxpayers to comply with them. Other initiatives were the expansion of the tax base, which, he said, facilitated revenue collection.

Commenting on the journey ahead, Musinguzi said: “We are optimistic that this target can be achieved given the expected economic growth of 5.5–6.0 percent and the revenue growth achieved in the previous year.”

The target for revenue collection in the fiscal year 2023–24 has been set at Shs 29.2 trillion, which is Shs 4 trillion more (16.17 percent) compared to the previous year.

To ensure the above is mobilized, Musinguzi said, “We have devised a comprehensive plan that includes measures such as strengthening tax administration and compliance, engaging with stakeholders, providing extensive education, improving staff accountability through performance management, implementing digital stamps and EFRIS, enhancing the use of data analytics, artificial intelligence, and risk management to identify audit cases and revenue leakages, using alternative dispute resolution, improving staff capacity and productivity, strengthening science investigations, and managing borders effectively.”

He added that “with these initiatives in place, we are confident that we can achieve our goals and contribute to the growth and development of our economy.”

He, however, called for a collaborative effort towards achieving URA’s 2023–2024 FY target.

“We are implementing some promising strategies and remain dedicated to investing in top-notch systems and partnerships to ensure exceptional service delivery. We would like to extend our sincere gratitude to all our clients, partners, and especially those who have been compliant taxpayers. Your contributions have been incredibly valuable, and we look forward to achieving even greater heights together this year,” said Musinguzi.