Uganda Revenue Authority (URA) was able to collect an extra Shs 258.89billion above the net revenue target of 16.3trillion that was set for them for the 2018/2019 financial year.
URA’s net revenue collections for FY 2018/19 that concluded on 30th June 2019 were Shs16.6trillion representing a performance level of 101.58%. This represents a growth rate of 14.95% (Shs 2.2161.5trillion) as compared to 2017/2018 revenue collection of Shs14.5trillion.
The 2018/2019 revenue represents a tax to GDP ratio of 15.11 %, an increase from 12.84 % in FY 2014/15, and slightly above the Uganda National Development Plan II target of 14.90% for the year.
Speaking Monday morning at the annual performance review press briefing held at the URA head offices in Nakawa Kampala, Doris Akol the Commissioner General URA attributed the good performance to improved domestic and international trade taxes, good tax policy measures, and the macroeconomic effect that included a higher than expected economic growth rate and growth rate, growth in private sector credit and increase in export volumes
“Domestic taxes net collections during the FY 2018/19 were Shs 9.7 trillion registering a performance of 102.80% and UGX 265.59 billion above the target. A growth rate of 17.68% was realized compared to FY 2017/18.b,” she said.
“The major tax heads that recorded gross surpluses during the year were majorly direct taxes that include; corporation tax; that registered a surplus of UGX 331.37 billion mainly attributed to the transport, storage and communication sub sector as well as the financial intermediaries and PAYE; that registered a surplus of UGX 148.60 billion mainly attributed to the public sector that performed at 127.96% of target.”
Akol further noted a growth in the net international trade tax.
“The net international trade tax collections during the FY 2018/19 were Shs 6.9trillion registering a performance of 100% and UGX 0.34 billion above the target. A growth rate of 10.85% was realized compared to FY 2017/18. The major tax heads that registered good performance during the financial year were; import duty that performed at 100.71% of the target and VAT on imports performed at 102.62%.”
During the FY 2018/19, Uganda’s economy grew by 6.1% against the projected growth of 6%. The Major revenue contributing sectors that registered positive growth during the year include mining and quarrying sector (17.6%), trade and repairs (6.6%), construction (5.7%), Manufacturing (4.4%), financial and insurance activities (8.3) and public administration (10.6%) among others.
For this financial year 2019/2020, URA is expected to collect and contribute Shs 20.2trillion to the Shs 40.5 trillion budget.