URA collects Ugx11.6tn in 2022/23 half year, records Ugx95bn shortfall  

Uganda Revenue Authority Commissioner General John Rujoki Musinguzi is working around the clock with his team to ensure they collect as much tax revenue as possible after reporting a shortfall of Ugx95bn in the first half of the current financial year (2022/2023).

The target for July to December 2022 was Ugx11.7tn representing 46.78% of the annual target – but net revenue collected was Ugx11.6trillion – representing 46.40% of the annual target and a shortfall of Ugx95bn.

“We are doing all we can as URA to support businesses, listening to their plight and responding with appropriate interventions as we push for greater tax compliance,” Rujoki said on Jan.31 at a news conference held in Kampala.

This FY2022/23 (July 2022 to June 2023), URA is expected to collect Ugx25.1tn out of the national budget of Ugx49.9tn. 

The half year performance shows a substantial growth in revenue of Ugx1.5tn (14.83%) compared to the same period last Financial Year 2021/22.

Gross domestic revenue collections from July – December 2022 were Ugx7.4tn against a target of Ugx7.4tn, resulting in a slight surplus of Ugx19.3bn. This represents a performance of 100.26% and subsequently, a growth of Ugx1.2tn (19.91%) compared to the same period last Financial Year of 2021/22.

Direct domestic taxes registered a surplus of Ugx84.74bn, non-tax revenue posted a surplus of Ugx171bn while indirect domestic taxes posted a shortfall of Ugx236bn.

Major surpluses were registered in PAYE (Ugx225.85bn), casino tax (Ugx29.33bn), rental tax (Ugx17.06bn) and tax on bank interest (Ugx8.80bn).

On the other hand, shortfalls were incurred in withholding (Ugx63.78 billion), corporate tax (Ugx59.08bn), and treasury bills (Ugx39.31 bn).

Rujoki said, domestic tax performance was supported by among other factors, the PAYE performance due to growth in the wage bill witnessed by companies – whose PAYE increased due to increased staff numbers and arrear management recovery initiatives; the operational teams’ intensive compliance focused field activities and increased rental income tax.

Meanwhile, gross international taxes collections from July – December 2022 were Ugx4.4tn against a target of Ugx4.5tn, representing a performance of 97.59%.

Whereas the customs tax collections were Ugx110bn below the target, there was a realized growth in revenue of Ugx377bn (9.27%) compared to the same period last financial year.

Rujoki said, by the end of the reporting period, the taxpayer register had 3,067,983 taxpayers – of these, 180,486 were non-individuals and 2,887,497 were individual taxpayers.

Looking ahead, the revenue target for the second half of the financial year is Ugx13.3tn, which accounts for 53.22% of the annual target of Ugx25.1tn.

The tax body plans to enhance taxpayer education and sensitisation, technology and data usage, skilling of staff and stakeholder engagement to achieve the set target.