URA collections boosted by reopening of economy

URA collections boosted by reopening of economy

With the half year revenue collection calendar already elapsed, the Uganda Revenue Authority (URA) is still behind in its domestic revenue collection targets of slightly more than $6.17 billion. FILE PHOTO | NATION MEDIA GROUP Uganda Revenue Authority (URA) has recovered from Covid-19 related shocks of about two years, posting a collection surplus in March. .

In a statement by Mr Ibrahim Kibuuka Bbossa, the URA assistant commissioner public and corporate affairs, the tax body said it had delivered a solid surplus in March, consequently reducing its annual shortfall, which, according to the half year revenue performance report, was Shs900b.

“We collected Shs1.834 trillion against a target of Shs1.823 trillion, registering a surplus of Shs11.11b and a performance rate of 100.61 per cent,” Mr Bbossa said in a statement.

The surplus, he said, reaffirms URA’s belief of meeting this financial year’s revenue target of Shs22.36 trillion.

With expansion of the tax register from currently more than 2.1 million taxpayers to a target of at least five million, URA believes it can hit the set revenue collection targets.

During March domestic tax collections grew by 17 per cent, translating into Shs174b in comparison to March 2021 last year.

Major surpluses were registered in the pay as you earn tax category (Shs38.62b) and Corporate Tax (Shs25.09 billion).

In general, Shs1.147 trillion against a target of Shs1.171 trillion were collected from domestic taxes, while customs collections stood at Shs775.06b against a target of Shs688.06b, which represented a performance rate of 112 per cent and a surplus of Shs87b.

Customs revenue collections grew by more than Shs70b (9.97 per cent) in March compared to the same period last year.

Covid-19 had largely affected tax collections between 2020 and 2021, curtailing the ability of a number of tax payers from meeting their obligations.

However, since the full reopening of the economy, a number of taxpayers have since recovered, paying both arrears and due obligations.

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