By Jumah Kakomo
Uganda revenue authority (URA) has registered a significant growth in revenue of UGX 1,490.41 billion representing 10.66% of this financial year 2021/2022, compared to the same period in the financial year 2020/2021.
This has been revealed by commissioner General of the authority John Musinguzi Rujoki while delivering his speech during the release of revenue performance report for the last three quarters of financial year 2021/2022, at authority headquarters Nakawa Kampala.
He says during the period of July to March, the actual net revenue collection were UGX 15,466.68 billion representing 69.16% of the annual target, however, the outturn for the period was short of the target of UGX 16,532.43 billion by UGX 1,065.75 billion.
*DOMESTIC TAXES PERFORMANCES*
He adds that the domestic revenue collections in the first nine months of FY 2021/22 were UGX 9,484.62 billion against a target of UGX 10,670.32 billion, registering a growth of UGX 816.22 billion (9.42%) as compared to the same period in FY 2020/21. However, the collections were below the target by UGX 1.185.70 billion.
*DIRECT DOMESTIC TAXES PERFORMENCES*
The direct domestic tax collections were UGX 4,907.64 billion, posting a performance of 94.17%. The direct tax collections for a period grew by UGX 273.94 billion (5.91%), compared to the same period in the financial year 2020/2021.
Musinguzi says major surplus were registered in PAYE (UGX 248.65 billion), casino tax (UGX 14.70 billion) and tax on bank interest (UGX1.84billion). Shortfalls were mainly incurred in corporate tax (UGX 200.81billion), withholding (UGX142.35billion), rental tax (UGX120.29billion), and treasury bills (45.14 billion) majorly due to COVID 19 restrictions that led to supply chain disruptions, low aggregate demand in the economy and thus reduced profitability. PAYE contributed the most to direct domestic taxes collections registering a growth of 15.50%, followed by corporation tax.
*INDIRECT DOMESTIC TAXES PERFORMENCE*
The indirect tax collections for the period July to March were UGX 3,602.86 billion. A growth of UGX 341.90 billion (10.48%) was realized compared to the same period in the FY 2020/2021.
*PERFORMANCE OF NON TAX REVENUE*
The non tax revenue collections were UGX 974.11 billion against a target of UGX 1,141.25 billion, posting a shortfall of UGX 167.13 billion and a performance of 85.36%.
He adds that URA intensifies administration measures to influence taxpayers compliance behavior, widen tax base and support revenue collections such as customs enforcement, arrears management, expansion of the taxpayer register among others.
Meanwhile Abel Kagumire URA commissioner customs URA says covid 19 pandemic has greatly affected revenue collection including the war between Russia and Ukraine leading to high increase of prices of fuels, goods and services.