Johnson Musinguzi, Uganda Revenue Authority (URA) Commissioner General, has revealed that the Authority will hit the Shs 22.42 trillion tax collections target in the Financial Year 2021/22.
With 14 days left to conclude the FY2020/21, URA has managed to collect about 93% of its set target of Shs 18Tn.
The target for the FY2021/22 is Shs 44.7Tn of which Shs 22.42Tn will be domestically collected, Shs 20.8Tn being tax revenue and Shs 1.5Tn Non-Tax Revenue.
“This is still only 13.8% of GDP, an increase of 0.7% of the current GDP,” Musinguzi said in a speech delivered on his behalf by Patience Rubagumya, the Commissioner Legal Services during the post-budget e-conference in Kampala.
Musinguzi noted that the increase in tax collections will be realized from an improvement in the level of economic activity, increased efficiency in tax collection by URA through strengthening compliance and enforcement, as well as new tax measures and administration reforms.
“The outcome objective of URA is to raise enough revenue to fund government expenditure and eliminate donor dependence. We shall strengthen timely revenue reconciliation and reporting,” he said.
Adding: “We shall strive to put our scarce resources to optimal use by ensuring financial prudence at all times so as to derive maximum outputs. Our desire is to raise at least 1% of GDP from Domestic resources on an annual basis. We call upon all Ugandans to join us on this journey to economic independency.”
The two day post-budget e-conference was organized by URA in partnership with the Ministry of Finance Planning and Economic Development under the Theme: “Sustainable Industrialization for Inclusive Growth, Employment and Wealth Creation”.
The conference was sub-themed: How Uganda’s Tax Policies and Measures Are Aiding Economic Recovery.
How URA has re-positioned to deliver on her Mandate.
In order to deliver on the expectations from Government in the medium and long term, Musinguzi said that URA has re-positioned herself by redefining her Mission, Vision and Core values, while placing special attention to the integrity of the staff, processes and systems.
“We believe that it’s through this that we shall be able to improve service offering to our esteemed clients, re-build URA’s credibility, improve compliance levels and ultimately deliver Uganda from Economic dependency,” he said.
Measures to be implemented:
In order to meet and exceed clients and stakeholder expectations and align with Government frameworks like the NDP111 and the DRMS, URA has rolled out interventions that will be implemented both in the short and medium term measures.
Process Management Enhancement; URA has been continuously re-engineering business processes so as to ensure consistency, simplicity, reduced compliance costs, improved efficiency and improved service delivery.
This, Musinguzi said, will enable tax payers to meet their tax obligations and also enable the Authority to increase the taxpayer register.
This is aimed at strengthening tax arrears management and recovery, enhancing data analysis through interfaces with other Government information systems to enhance taxpayer compliance, continuing to implement key smart Information Technology business solutions like DTS, EFRIS, enforcing enhanced licensing requirements for clearing and tax agents and improving detection of smugglers using non-intrusive inspection equipment.
Leverage the use of Technology and Data analytics; URA is purposing to improve Information Technology (IT) reliability, security and integration to improve operational practices.
The Integrated Solution for Tax Administration (ISTA) is set to transform domestic taxes business processes (integrated URA) by providing a suitable solution and working environment that meets the ever-changing client needs and optimizes revenue yields while being cost efficient in tax administration.
Improvement in Tax Education; URA is reviewing the scope of Tax Education, simplification and institution of mobile taxpayer services.
This will include among others; Mobile tax offices, E-learning portal for clients to deliver and administer self-paced hands on training, investment in URA TV to increase the virtual reach to clients, secondary school tax curriculum.
URA will also work with Civil Society and other Government MDAs to efficiently and effectively deliver tax education to the population and use of social media platforms to reach out and educate the public on taxation.
Optimize Stakeholder engagement; Musinguzi said URA will engage stakeholders whom he said are very crucial during taxpayer education, revenue mobilisation, tax policy formulation process among others.
Deepen Research to support Tax Base Research especially in areas of new revenue streams and policies such as Green taxes, Digital economy – Digitax, land, mining, oil and gas, property, environment among others.
Facilitate Trade through Customs modernisation; this is set to harmonize customs procedures and systems to improve cross border trade, collaboration between government agencies, clearance time, reduce cost of doing business, build a robust international trade risk management system that will leverage on re-engineered and automated processes making the international supply chain more secure by managing risks, rewarding compliance, facilitating trade and enhancing revenue generation.
Improve our people and Governance; This, according to Musinguzi, will entail among others; Developing the desired URA staff culture, Integrity enhancement programme implementation, Structural review and functional alignment, (increase in staff numbers by 600 and above to improve on URA’s footprint).