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URA misses first quarter target by Shs 499bn

URA staff at a corporate social responsibility activity recently

URA staff at a corporate social responsibility activity recently

Uganda Revenue Authority (URA) has missed its target for the first quarter of financial year 2021/22 by Shs 499.49 billion.

Out of the Shs 4.959 trillion target set by government, the tax body managed to collect Shs 4.459 trillion. However, this is a revenue collection growth of Shs 389.7 billion from the 2020/21 collections of the same period.

Government set URA a total revenue collection target of 22.363.52 trillion in FY 2021/22 which is 3.100.51 over and above last year’s collections. John Musinguzi the URA commissioner general said that government’s continued restrictions on some sectors has partly affected the supply chain hence disrupting the market like restaurants, hotels, events institutions and many more.   

A number of sectors declined in revenue collection compared to last financial year. For example, the construction sector declined by 15.95 per cent and real estate by 4.67 per cent, whereas the revenue from the electricity, gas, steam and air conditioning supply sectors also declined by 17.31 per cent.  

Musinguzi added that the restrictions have also influenced domestic tax performance with numerous deficits; VAT by Shs 223.64 billion, local excise duty at Shs 77.27 billion, cooperate tax at Shs 24.74 billion and rental income tax at Shs 19.49 billion.   

International trade tax collection was also characterized by deficits, such as petroleum duty at Shs 43.34 billion, import duty Shs 68.27 billion and withholding tax Shs 135.80 billion. 

Under the international tax performance, the country also registered a decline in imported fuel volumes by 30.39 million litres in comparison to the same period last financial year. In a breakdown, petrol declined by 24.49 million litres, diesel by 5.24 million litres and kerosene 0.73 million litres.   

More to the above, tax yields from imports also declined by Shs 8.655 billion compared to the same period last financial year. According to URA, the major yielding items also registered declines - motor vehicles by Shs 345.36 billion, palm oil by Shs 224.94 billion, wheat/meslin by Shs 148. 45 billion, petroleum oils by Shs 113.46 billion and electrical apparatus by Shs 116.07 billion among others.  

Despite the missed target, the commissioner general is optimistic that the authority will collect the remaining Shs 17,404,25 trillion by end of the financial year, starting with Shs 6,104.64 trillion for the second quarter.

To achieve the target, URA highlighted its strategies including among others; alternative dispute resolution to amicably resolve tax disputes with the taxpayers; strengthening implementation of digital tax stamp and electronic fiscal devices, which will increase effectiveness and efficiency; ensuring effective and efficient implementation of Domestic Resource Mobilization Strategy.

Meanwhile, the tax body managed to register 65,666 new taxpayers in this same period, which expanded the tax base to 1,849,159 payers. In the same period, the URA customs enforcement managed to recover Shs 22.38 billion from the 2,161 seizures; the investigations also recovered Shs 24.28 billion from the 38 cases. 


0 #1 Joe 2021-10-22 20:49
Kindly could someone from Finance explain to ordinary Wanaichi, why with the havoc the economy is in and the suffering the citizens endure, please explain why a certain amount of growth must be targeted "rain or shine" to the extent that no one can see the sense to waive VAT on water!

We need to encourage people to wash their hand at every turn!

Our children to need to study on line, there is need to do work from home, so we need affordable data, couldnt the tax on data wait until we get out of hell? Tax on mobile money during this pandemic!

Because you all have so much money in your houses and your bank accounts are saturated,are paid highly, you drive the latest "mpenkonis" with a lead security car and one behind, with tons of men guarding your mansions, you forget that many, many people have to make ends meet, you forgot so fast that your education was paid for with the sweat of peasants! Kale.
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0 #2 Tomas 2021-10-22 22:09
Setting high targets on a starving cow.
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