By Moses Oketayot

The Ministry of Finance, Planning and Economic Development has allocated a revenue target of Ugx 25.5 billion to the Uganda Revenue Authority in the financial year 2022/23 (July 2022 to June 2023), including including non-tax revenue.

Speaking to reporters at the headquarters in Nakawa on Thursday, URA Commissioner General John Musinguzi revealed that in the first quarter of the current fiscal year (July to September 2022), the Inland Revenue was able to collect Ugx5.4t against the target of Ugx5 .1t, resulting in a surplus of Ugx286.4b, representing an improved performance of 105.58%.

The surplus highlights an increase in revenue of Ugx 957.80 billion (21.47%) compared to the same period of the previous financial year (July to September 2021)

Musinguzi attributed the improved revenue collection to a number of factors, including the pay-as-you-go (PAYE) excess of Ugx 85.89 billion due to the growth in payroll seen. by companies whose PAYE has increased due to the increase in the number of employees.

Other areas that recorded a surplus include casino tax (Ugx17.34b), corporation tax (Ugx14.99b, bank interest tax (Ugx4.69b) and rental tax (Ugx1.46b). ).

In the customs department, there was a growth in the value of dry imports: the value of imports of dry goods increased by 28.42% (Ugx1.7 t), in particular imports of dutiable goods and imports of dutiable goods. This has resulted in an increase in revenue collection and partly explains the cumulative surplus of Ugx 151.24 billion in international trade tax collections, partly because the economy is recovering and businesses straighten up.

The slight decline in fuel pump prices was also attributed to increased fuel import volumes of 88.41 million liters (18.06%) compared to the same period last year. This is mainly explained by the increase in the volumes of gasoline by 71.56 million liters (33.34%) and kerosene by 2.20 million liters (20.73%).

However, diesel import volumes decreased by 5.80 million liters (2.39%), which was insignificant for revenue collection, resulting in a surplus of UGX 45.70 billion in duties tankers.

There was also an increase in the tax yield of major imported items during the review period compared to the same period in the prior year. These included; personal motor vehicles (Ugx27.73b), palm oil (Ugx25.80b), wheat/meslin (Ugx21.79b), used clothing (Ugx20.5b), polyethers (Ugx11.30b), polymers (Ugx10 .62b), motorcycles (Ugx8.53b), petroleum oils by (Ugx8.16b), plastic shoes by (Ugx8.04b) and hot rolled iron/non-alloy steel by (Ugx7.59b).

The increase in domestic taxes was also attributed to the intensive targeted field activities of operational teams, stakeholder management and improved tax compliance support.

He, however, attributes the shortfall in withholding tax in part to reduced budget releases for various government entities for the first quarter, preventing them from paying some of their suppliers.

“We have seen an increase in capital expenditure due to capital investments in our customers due to improved economic performance. In addition, high inflation, which increased from 6.8% in June 2022 to 10 % at the end of September 2022, has led to an increase in the cost of doing business and, consequently, high input costs. This has had an impact on the VAT revenue of taxpayers realized during the period under review”, said added Musinguzi.

147,892 new taxpayers were added to the taxpayer register during the period under review, representing a growth of 5.65%. At the end of September 2022, the taxpayer register had 2,765,900 taxpayers. Of these, 174,020 are non-individuals and 2,591,880 are individual taxpayers.

“Registration performance is attributed to key initiatives such as tax education and awareness, Taxpayer Registry Expansion Program (TREP), data analytics from third-party data, stakeholder engagements stakeholders and the use of tujenge buses to reach our taxpayers,” Musinguzi noted.

During the same period, the URA won 40 cases in total with 28 civilians, 6 criminals, 6 withdrawals in favor of the Authority, 4 cases decided against them, and there was no split decision with Ugx26.98b collected.

In the tax investigation department, 32 cases were closed and revenues worth Ugx 45 billion recovered by the Authority.

Musinguzi concluded that collecting Ugx25.55t is a daunting task, but the tax authorities are confident that the goal is achievable with the help of every taxpayer and economic actor.

Moses Kaggwa, who represented the Permanent Secretary and Treasury Secretary of the Ministry of Finance, Planning and Economic Development, attributed the increase in inflation (10%) to global trends such as imported inflation, war in Ukraine and the recent decision by OPEC to reduce declining oil production by two billion liters per day, global climate change and rising inflation worldwide.

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