Target surpassed

URA’s steady hands deliver surplus under Musinguzi

Kampala, Uganda | JULIUS BUSINGE | Amid growing government appetite for bigger fiscal outlays, URA was tasked with collecting a net revenue of Shs 31.37 trillion for the 2024/25 financial year.

By the close of June, the tax body had collected Shs 31.63 trillion, surpassing the target by Shs 262.43 billion and registering a strong performance of 100.84 percent. The result marked a revenue growth of Shs 4.33 trillion or 15.86 percent compared to the previous financial year.

Commissioner General John R. Musinguzi, while presenting the annual performance briefing on July 7, described the outcome as a result of both deliberate reforms and a stable macroeconomic environment.

“It is because of our patriotic and faithful taxpayers, coupled with administrative improvements and policy interventions, that we have recorded this excellent performance,” Musinguzi told the press in Kampala. “We must now move with even greater resolve to support businesses, collect diligently, and serve the country with transparency and efficiency.”

URA’s achievement stands out not just in raw numbers but in the changing structure of the economy. With a steady GDP growth of 6.7 percent at mid-year, supported by services and industrial sectors, the tax body capitalised on improved compliance and stronger engagement with taxpayers. The surplus, Musinguzi said, is proof that a more inclusive tax administration can deliver results, even under heightened expectations.

The performance was driven by robust domestic tax mobilisation, which alone brought in Shs 21.25 trillion—against a target of Shs 21.12 trillion. That’s a performance rate of 100.62 percent, with a surplus of Shs 131.78 billion and a year-on-year growth of Shs 2.87 trillion or 15.59 percent. The largest contributions came from Pay As You Earn (PAYE) at Shs 5.38 trillion, VAT at Shs 5.05 trillion, and corporate tax which contributed Shs 3.26 trillion. Local excise duty added Shs 2.43 trillion, and withholding tax Shs 1.93 trillion.

International trade taxes, traditionally a major source of government revenue, performed just as impressively. Collections reached Shs 11.10 trillion against a target of Shs 11.05 trillion—translating to a performance of 100.45 percent and a surplus of Shs 49.32 billion. Petroleum duty and VAT on imports were the two dominant streams, contributing Shs 3.8 trillion and Shs 3.73 trillion respectively.

As government spending ambitions continue to expand, especially under Vision 2040 and the National Development Plan IV, the pressure on URA is only expected to intensify. The revenue target for the 2025/26 financial year is set at a staggering Shs 36.74 trillion—an increase of Shs 5.37 trillion or 17.12 percent from the current year. While the figures may seem ambitious, Musinguzi is confident they are within reach.

“To meet this rising demand, we will rely on improved technologies, more effective risk analysis, and enhanced compliance strategies,” he said. URA’s planned approach includes expanding its workforce, improving staff performance management, enhancing border management systems, and deepening the use of artificial intelligence and data analytics to uncover tax leaks and broaden the tax base.

The Commissioner General also reiterated the importance of digital tools such as electronic fiscal devices (EFRIS), digital tax stamps, and alternative dispute resolution mechanisms to make compliance easier and more predictable. Already, these tools have proven useful in closing revenue gaps and making audits more targeted.

Musinguzi was also keen to highlight the human element behind the numbers. He acknowledged the contribution of compliant taxpayers and urged businesses to continue fulfilling their obligations. “It is your effort that enables government to build roads, pay salaries, run hospitals, and educate our children,” he said. “We are here to walk with you, not against you.”

Looking ahead, URA’s focus will remain on simplifying procedures, reducing bureaucracy, and curbing corruption. The Commissioner General concluded his briefing with a call for continued partnership and shared responsibility, reminding Ugandans that revenue collection is a national duty, not just a bureaucratic task.

With the government banking on higher domestic revenues to support its development agenda, Musinguzi and his team have demonstrated that with discipline, innovation, and collaboration, even the steepest targets can be achieved. Whether URA can repeat or exceed this feat in the next fiscal cycle remains to be seen—but the foundation has been firmly laid.