President Museveni has tasked Uganda Revenue Authority (URA) to plug revenue leakages and fight corruption in the institution in order to boost revenue collections.
“Like I said in 2019, at the launch of the URA tower, URA is Holy Ground from where Uganda’s Economic Independence would spring. Continue with the fighting against that bad spirit of corruption in the Institution and plugging the revenue leakages. It is important for you to fulfil your part of the bargain because you are now mature,” he said.
The President, flanked by First Lady and Minister of Education and Sports Janet Kataha Museveni was yesterday afternoon the Chief Guest at the thanks giving ceremony organized by the Tax Body, Uganda Revenue Authority (URA) that was celebrating her 30 years of existence.
He added that since the number 30 symbolises maturity prophetically, a lot is now expected out of the taxman.
He said: “Prophetically the number 30 means maturity, loyalty and true dedication.
Now to whom much is given much is expected. My expectations of you match the responsibility you now hold. You are now mature and you are expected to behave maturely. A lot more is expected from you.”
He noted that Uganda’s Tax to GDP ratio remains very low and hence the need for the revenue body to address the challenges that he said are well known to them.
“Our tax to GDP ratio still stands at merely 13%; some of our traders are still being unfairly outcompeted by imported goods; some potential tax payers are dodging tax payment. These trends are bad for our economy and we cannot permit the undoing of the positive achievements so far obtained. “When low revenue is collected yet our tax to GDP has expanded, it is a sign that a lot of income is not being taxed; when our companies close down or do not produce at maximum capacity, it is because we are allowing unfair competition from imports, and also means that thousands of our youth will lose or can’t be absorbed into employment. All these challenges and others are well known to you,” he said.
On the Commissioner General appointment, Museveni said: “I believe my recent appointment of John Rujoki Musinguzi as the new Commissioner General, together with his team, will deliver exceptional results.”
On his part, the Commissioner General gave the performance highlights one year into service at URA.
“In the FY 2020/21, URA collected net revenue of UGX 19,263.00 billion and posted a growth in revenue of 14.99 percent in comparison to the FY 2019/20 and an estimated tax to GDP ratio of 12.99 percent. In real terms, this reflects a growth in revenue of UGX 2,511.36 billion, the highest growth registered in the last four years amidst the Covid-19 pandemic,” he said.
He added that in the same year, the tax register was boosted with new taxpayers, something that positively impacted collections.
“During the FY 2020/21, 189,377 new taxpayers were added to the taxpayer register. By the end of the FY 2020/21, the taxpayer register had 1,783,493 taxpayers. Improved the Tax Identification Number (TIN) registration from which has been simplified, from excel templates into a simple single web form to facilitate taxpayer registration. This has further been linked with the NIRA database to make it easier to register for tax once you have a NIN,” he said.
He added that Structural Reforms have been put in place to improve governance, accountability, and performance. The include a staff compliance Division to report directly to the Executive Office to foster a robust integrity culture and rebuild the URA credibility and brand;
How Stanbic Bank CFO Ronald Makata Blends Governance, Technology and Human Leadership to Drive PerformanceAn IT & Innovations elevated to department to facilitate technological advancements including leveraging process and systems integrations; data analytics to drive a data-driven decision-making culture; artificial intelligence, and Innovations that are key to driving continuous transformation of the Authority;
And a Learning and Development Division to fully focus on robust human capital development to proactively address the changing work dynamics and skilling requirements that are pertinent to drive domestic revenue mobilization.
To boost Taxpayer & Citizen Engagement, Musinguzi revealed that URA has escalated tax outreach activities in support of the national agenda of Domestic Revenue Mobilization (DRMS).
“Through a campaign dubbed ‘Tujenge Uganda’ – a mobile office units were launched in July 2021, the buses are designed to offer mobile tax office services specially to remote areas that lack proximal access to URA offices and electronic services. They are powerful vehicles for inclusive tax mobilization. The URA TV also hosts 14 business leaning, sector based, tax education programs for taxpayers as well as driving internal communication to achieve a shared understanding of the new direction for staff,” he said
Musinguzi said URA will form working partnerships as the authority looks to boost revenue collections
“We are fully cognizant and recognize that, the process of mobilizing revenue can only be achieved with the partnership of the civil society, taxpayers, respective government leaders, MDAs, legislators and the citizens each playing their roles concertedly to contribute to national development, he said.
He added that as URA looks to strengthen our systems, further integrate processes, and develop capacity, embrace data analytics that will drive revenue mobilization, the Authority shall employ a multi-pronged approach to: Rebuild URA’s credibility as a trusted Partner, revamp and focus on robust Talent development and growth that will foster an ethical, professional and proficient (skilled) workforce, Leverage Technology, data and innovation, Simplify and integrate our Business processes that will enhance cross-functional alignment with a view to fostering simple, transparent, and convenient, client-centric integrated tax services, Strengthen the Tax Education and empowerment of our Taxpayers- among the new initiatives deployed includes the drive to categorize our taxpayers and offer customized and relevant Tax Education and awareness, Enhance Taxpayer Service initiatives (ISSP) as well as Build and harness partnerships, stakeholder collaborations & citizen involvement.
“URA will continue to seasonally partner with our development partners, MDAs, third party agencies, Apex Bodies, and Civil Societies to build capacity,acquire, improve, and implement service improvement initiatives, it is our hope and prayer that these partnerships can be further consolidated to build a unified understanding to objectively support taxpayers in meeting their obligations,” Musinguzi said.
According to the country’s Vision 2040, projections indicate that Uganda will be repositioned to a first world country in the next fifty years. To achieve this transformation the average real GDP growth rate will have to be consistent at about 8.2 per cent per annum translating into total GDP of about US$ 580.5bn in 2040.
“As we look to the next 30 years, it is imperative that we consider that the development and independence of our country shall be largely a result of our efforts, and personal responsibility as citizens of this country. Our role in this journey is to simplify and make available relevant, clear, capable advice and accessible channels that will facilitate revenue mobilization,” the Commissioner General said.
He added: “Our vision and prayer is that when we hold the next commemoration day that celebrates URA at 60 years of service to this country, our beloved Uganda will well on its way to a fully 1st world economy and our children & grandchildren will give testimony of this pivotal landmark and the generation that fulfilled this Higher Calling that positioned our beloved Uganda nationally and ultimately enhanced us to impact globally.”
