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Uganda Revenue Authority Registers Shs 1trillion Loss In Three Months

Uganda Revenue Authority Registers Shs 1trillion Loss In Three Months

As the country moves closer to the end of this financial year, the Uganda Revenue Authority (URA) is still optimistic about meeting its annual revenue collection target of Shs 22.4 trillion.

However, their hopes have been blurred after registering a shortfall of Shs 1 trillion in the last three months.

Uganda Revenue Authority Commissioner General, John Musinguzi, addressed media at the URA headquarters in Kampala on Tuesday. He said in the first nine months of the FY 2020/21, URA had a target of collecting Shs 16.5 trillion. This represented 73.93% of the annual target of Shs 22.4 trillion.

“During the period July to March, the actual net revenue collections were Shs 15,466.68 billion representing 69.16% of the annual target. However, the outturn for the period was short of the target by Shs 1,065.75 billion,” Musinguzi said.

He also said they registered a significant growth in revenue of Shs 1.4 trillion (10.66%) in July to March FY 2021/22 compared to the same period in the FY 2020/21.

Musinguzi noted the domestic revenue collections in the first nine months of the FY 2021/22 were Shs 9 trillion against a target of Shs 10 trillion. This showed a growth of Shs 816 billion (9.42%) as compared to the same period in FY 2020/21.

However, he said the collections were below the target by shs1.2 trillion.

“The direct domestic tax collections were shs4,907.64 billion, posting a performance of 94.17%. The direct tax collections for the period grew by shs273.94 billion (5.91%), compared to the same period in the FY 2020/21,” he said.

Musinguzi said PAYE, casino tax, and bank interest registered major surpluses. He also revealed that shortfalls were mainly seen in corporate tax, withholding, rental tax, and treasury bills.

He attributed this to the Covid-19 restrictions that led to supply chain disruptions. And additionally, low aggregate demand in the economy and thus reduced profitability.

According to Musinguzi, majority of the sectors recorded positive growth throughout the nine months. However, they registered significant declines in revenue in some sectors.

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