KAMPALA — Uganda Revenue Authority (URA) Commissioner General John Musinguzi has revealed that the taxman in the first quarter FY 2020/21 (July to September) collected UGX4. 5 trillion,— posting a growth of 9.57 percent in comparison to the FY 2020/21.
Despite the growth, the outturn of the first quarter is short of its target of UGX 4,959.26 billion by UGX 499.49 billion
Speaking to journalists at URA head offices in Kampala, Mr. Musinguzi
attributed revenue growth to key initiatives including arrears management which resulted in a revenue recovery of UGX.322.63 Billion.
Having achieved 14.99% growth in revenue collection URA is expected to collect UGX. 22.3 trillion in the FY 2021/22.
The projection is UGX.3.1 trillion over and above last year’s revenue collections.
Mr. Musinguzi said the domestic revenue collections stood at UGX. 2.6 trillion and hence registering a growth of 8.11 percent (UGX.199.10 billion) compared to last financial year.
“URA will continue to implement domestic revenue mobilization strategies like; upgrading e-tax system to accommodate task at nation level, upgrading the URA data center, procurement of scanners, electronic cargo and driver trucking systems (RECDTS), ” he said.
At least 74% of the revenue was generated from the top five sectors during the first quarter of FY 2021/22. The wholesale and retail trade sector had the biggest contribution, which amounted to UGX. 1.4 trillion.
He said over 65,666 new taxpayers were added to the taxpayer register in the first quarter of the financial year. By the end of September 2021, the taxpayer register had a total of 1,849,159 taxpayers.
“At URA guided by the three core values of Patriotism, Integrity and Professionalism, we pledge to mobilize enough revenue for national development in the most transparent and efficient manner,” he said.
The tax body revealed that customs revenue collections stood at UGX 1.9 trillion against a target of UGX. 2 trillion registering a growth of 8.88 percent (UGX 152.14 billion) compared to last financial year.
Sectoral contribution to revenue
In terms of sectors, URA says 74.02 percent of the revenue was generated
from the top 5 sectors during the first quarter of FY 2021/22.
The wholesale and retail trade sector had the biggest contribution,
which amounted to UGX 1,361.14 billion (30.10 percent).
The manufacturing sector followed with a contribution of UGX
1,067.27 billion (23.61percent).
The financial activities
contributed UGX 353.66 billion (7.82 percent), while UGX 338.36
billion (2.65 percent) was generated from the information and
communication sector and UGX 202.98 billion (4.49 percent) from
public administration.
On a year to year basis, the Arts, Entertainment and Recreation
sector grew by 97.24% mainly due to arrears recovery of UGX. 7.22 Billion from the gaming activities; Water supply, sewerage, waste management and remediation activities grew by 64.97% due to payment of arrears for the period between February 2021 and August 2021 worth UGX 9.62 billion paid in the July to September.
The Mining and Quarrying sector grew by 41.69% mainly arising from out of court settlements from Oil and Gas activities.
However, there was a decline in revenue collected from some sectors in the first quarter of FY 2021/22, compared to same period in FY 2020/21.
Revenue from the Electricity, Gas, Steam
and Air conditioning supply sector declined by 17.31%, the Construction sector declined by 15.95% and the Real estate sector declined by 4.67%.
