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URA Registers Shs94bn Shortfall in Revenue Collections for July-December Period

The Uganda Revenue Authority, (URA) has registered a “slight” shortfall of UGX 94.80 billion in the revenue collected between (July and December) of the Financial Year 2022-23.

According to the URA Commissioner General, John Musinguzi Rujoki, the target for July to December 2022 was UGX 11,764.83 billion representing 46.78% of the annual target.

However, the net revenue collected was UGX 11,670.03 billion representing 46.40% of the annual target.

He noted that whereas there was a slight shortfall of UGX 94.80 billion, the general performance was 99.19%.

“This performance also shows a substantial growth in revenue of UGX 1,506.83 billion (14.83%) compared to the same period last Financial Year 2021/22,” Rujoki said.

In the Financial Year 2022/23 (July 2022 to June 2023), URA is expected to collect UGX 25,151.57 Billion out of the national budget of UGX 49,990 Billion (49 trillion).

Rujoki was speaking during the half-year revenue press conference for FY 2022-23 July-December.

Under the Gross Domestic revenue collections from July – December 2022, Rujoki said they collected UGX 7,470.03 billion against a target of UGX 7,450.71 billion, resulting in a slight surplus of UGX 19.32 billion.

This represents a performance of 100.26% and subsequently, a growth of UGX 1,240.35 billion (19.91%) compared to the same period last Financial Year of 2021/22.

Direct domestic taxes registered a surplus of UGX 84.74 billion, non-tax revenue posted a surplus of UGX 171.08 billion while indirect domestic taxes posted a shortfall of UGX 236.50 billion.

Major surpluses were registered in PAYE (UGX 225.85 billion), casino tax (UGX 29.33 billion), rental tax (UGX 17.06 billion) and tax on bank interest (UGX 8.80 billion).

On the other hand, shortfalls were incurred in withholding (UGX 63.78 billion), corporate tax (UGX 59.08 billion), and treasury bills (UGX 39.31 billion).

On the performance of Custom Taxes, the Gross International taxes collections from July – December 2022 were UGX 4,453.85 billion against a target of UGX 4,563.95 billion, representing a performance of 97.59%.

Whereas the customs tax collections were UGX 110.10 billion below the target, there was a realized growth in revenue of UGX 377.73 billion (9.27%) compared to the same period last financial year.

Surpluses were registered in import duty (UGX 23.75 billion), surcharge on imports (UGX 1.06 billion) and Temporary Road License (UGX 16.10 billion).

However, shortfalls against the target were registered in the following tax heads; Petroleum duty by (UGX 69.80 billion), Excise duty by (UGX 21.95 billion), VAT on imports by (UGX 42.89 billion), Withholding tax by (UGX 8.80 billion), Infra-structure levy by (UGX 5.68 billion), Export levy by (UGX 1.90 billion.

Uganda’s Exports

Uganda’s exports to the rest of the world amounted to UGX 4,235.74 billion. This was an increase of 7.13% (UGX 281.75 billion) compared to the same period last financial year.

According to Rujoki, the significant growth of exports was due to improved economic recovery from the COVID-19 pandemic.

The top exported items were; coffee, tea, beet sugar, iron/steel bars, wheat/meslin, salted/dry fish, mineral waters, other manufactured tobacco, grain sorghum, brans/sharps, other residue viner sheets, among others.

A decrease in exports was registered in fish fillets, mushrooms, cocoa beans, milk and cream, rolled iron/non-alloy steel, dried leguminous vegetables, articles of plastics and beauty make-up.

The five-leading destination for Uganda’s exports were South Sudan, Italy, DRC, Kenya, and Germany.

The team at URA will now have to collect is UGX 13,386.74 billion (53.22 of the total budget) if it is to hit its targets.

“The revenue target for the second half of the financial year is UGX 13,386.74 billion, which accounts for 53.22% of the annual target of UGX 25,151.57 billion,” Rujoki said.

He said a number of initiatives are being taken to ensure the target is hit.

The post URA Registers Shs94bn Shortfall in Revenue Collections for July-December Period appeared first on SoftPower News.


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