URA says its annual revenue target still achievable

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The URA Commissioner General, John Musinguzi addressing the media on Tuesday. PHOTO/COURTESY.

Uganda Revenue Authority has announced revenue collections for the period starting July 2021 to March 2022.

Addressing the media at the URA headquarters on Tuesday, the Commissioner General,John Musinguzi, said the tax body Collected 15.5 trillion adding that the actual net revenue collections represented 69.16% of the annual target.

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According to Mr Musinguzi the Domestic revenue collections in the first nine months of the FY 2021/22 were UGX 9,484.62 Bn against a target of UGX 10,670.32 Bn, registering a growth of 816.22 billion as compared to the same period in FY 2020/21.

“The direct domestic tax collections were shs4,907.64 billion, posting a performance of 94.17%. The direct tax collections for the period grew by shs273.94 billion (5.91%), compared to the same period in the FY 2020/21,” he said.

The Commissioner General however said the collections were below the target by shs1.2 trillion.

“Shortfalls were mainly incurred in corporate tax (UGX 200.81 Bn), withholding (UGX 142.35 Bn), rental tax (UGX 120.29 Bn) and treasury bills (UGX 45.14 Bn) mainly due to COVID 19 restrictions that led to supply chain disruptions and low aggregate demand in the economy.”

Despite the shortfall, the Commissioner General was optimistic that the target of Shs 22.4 trillion will be met.

The performance report indicates that manufacturing, financial services, public service, defense and ICT did perform well compared to electricity and gas, construction and real estate among others. 

COURTESY PHOTO.

Mr. Musinguzi, said that the decline in some areas is attributed to the slow recovery of the economy from the Covid-19 pandemic.

“Revenue from electricity, gas, steam and air conditioning supply declined by 25.77%; Construction declined by 10.32%, while a decline of 3.20% was registered under Real estate activities. The decline is attributed to slow recovery of businesses from Covid-19,” he said.

He noted that the revenue performance has improved that it wasn’t just education. bars, and many other sectors had been impacted on by the Covid-19 adding that in March, they were able to collect up to the target and exceed it.

“Wholesale and retail trade sector was the highest contributor with 29.25 % (UGX 4,604.72 billion); Manufacturing sector followed with 23.45%(UGX 3,690.68 billion),” the Commissioner General added.

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