When Finance Minister Matia Kasaija tabled government’s latest revenue proposals, attention quickly fixated on one figure: UGX 2.3 trillion expected from new tax measures.
But buried deeper in the annexes is an even more consequential plan, one that could reshape how Uganda collects taxes altogether.
The Ministry of Finance Revenue Enhancement and Compliance Measures for the 2026/27 financial year, shows that beyond new levies on fuel, gaming, digital services, and consumption, government is targeting an additional UGX 2.54 trillion through technical and administrative reforms at Uganda Revenue Authority (URA).
If both strategies succeed, Ramathan Ggoobi will steer Uganda toward a new fiscal era, pairing fresh taxes with aggressive enforcement to raise nearly UGX 4.8 trillion.
This will be one of the most ambitious fiscal pushes in the history of Uganda in a single financial year.
From new taxes to smarter collection
The first pillar of the plan, the new tax policy, leans heavily on consumption and sector-specific levies.
Excise duty changes alone are projected to raise over UGX 1.15 trillion, while VAT reforms and income tax adjustments contribute UGX 358.27 billion and UGX 410.3 billion, respectively, according to details in the Revenue Enhancement and Compliance Measures for the 2026/27 financial year.
But it is the second pillar, enforcement and efficiency, that signals a deeper shift in strategy.
Revenue Enhancement and Compliance Measures show that government believes the biggest untapped revenue lies not in creating new taxes, but in collecting what is already due.
The UGX 2.54 trillion enforcement push
At the heart of the administrative plan is a sweeping modernisation of tax collection systems, backed by data, automation, and targeted enforcement.
The report shows that the largest share, over UGX 1.21 trillion, is expected from improved recovery of tax arrears, reflecting a deliberate push to clean up outstanding domestic and customs tax balances.
It further outlines that digital compliance will play a central role, with the expansion of Electronic Fiscal Receipting and Invoicing Systems (EFRIS) projected to generate UGX 320 billion by improving real-time monitoring of transactions.
The report also indicates that the rollout of digital tax stamps is expected to bring in UGX 267 billion, targeting under-declaration and illicit trade, particularly in manufacturing and imports.
In addition, the measures highlight UGX 250 billion expected from faster resolution of tax disputes through Alternative Dispute Resolution, while UGX 197 billion is projected from enhanced cargo inspection technologies.
The report also points to UGX 115 billion from tighter customs enforcement and valuation controls, as well as UGX 120 billion from intelligence-led operations in high-risk sectors such as fuel, textiles, and cement.
Tax Appeals Tribunal Halts URA’s Objection to Non-Payment of 30% of Disputed UGX 169.9b by MTN Over Due Process FailuresFurther gains of UGX 100 billion each are expected from the automation of tax processes and the integration of third-party data systems, while the expansion of the taxpayer register is projected to contribute UGX 66 billion.
Altogether, these administrative interventions are estimated to generate UGX 2.54 trillion.
A system under transformation
Taken together, the reforms described in the report reveal a government increasingly focused on visibility and traceability within the economy.
From linking taxpayer records with national ID systems to integrating financial data and deploying analytics for risk detection, URA is positioning itself to track economic activity with far greater precision than before.
This suggests that the era of operating outside the tax net is narrowing.
The trade-offs
Yet the strategy is not without risk. While enforcement promises efficiency, the simultaneous introduction of new consumption taxes, particularly on fuel and financial transactions, has raised concerns about inflation and the cost of living.
Businesses, especially in the informal sector, may also face increased compliance pressure as digital systems expand.
Still, government argues that the approach is necessary to reduce reliance on borrowing and fund critical investments in infrastructure and public services.
A transformation in fiscal philosophy
What emerges from the Revenue Enhancement and Compliance Measures for the 2026/27 financial year is not just a revenue plan, but a transformation in fiscal philosophy.
Uganda is no longer relying solely on raising taxes; it is betting just as heavily on closing leakages, digitizing compliance, and enforcing existing laws.
Whether this dual strategy delivers will depend on execution. But if it does, it could mark a turning point in how the country finances its development.
One reality, however, sticks out: The tax system is becoming harder to evade and far more efficient at finding you.
