Minister of Finance, Henry Musasizi signing the URA Client Charter and Service Delivery standards. Looking on is URA Commissioner General, John Musinguzi
By Prisca Wanyenya
Government has revealed that the onset of the first oil production this year will push Uganda’s economic growth to the double digits for the first time since the 1990s economic reforms.
The growth is projected to rise from 6.4% recorded in 2025 to 10% growth in 2026/2027.
The revelation was made by the Minister of Finance, Henry Musasizi during the National Post Budget Dialogue 2026/2027 organised by Uganda Revenue Authority at Hotel Africanna on 7th July 2026.
“Our economy is projected to grow by 6.4 percent during the financial year that closed a week ago and has expanded to approximately UGX250Trn, an equivalent of US$69Bn. With the commencement of commercial oil production later in this year and continued investments across the productive sectors, economic growth is projected to accelerate to over 10 percent during financial year 2026-2027. This would represent Uganda’s first return to double-digit growth in several decades,” Musasizi said.
He also defended Government’s decision to raise URA’s revenue collection targets in 2026/2027 to UGX45.96Trn, of which UGX40.16Trn will come from tax revenue, arguing that these resources will finance the investments required to sustain Uganda’s transformation agenda while maintaining fiscal sustainability, which responsibility he said isn’t only for URA but all Ugandans.
“Countries that have successfully transformed their economies have done so by progressively strengthening their ability to finance development from their own resources. We recognise that sustained development cannot rely indefinitely on borrowing or development assistance alone. It requires a growing economy, driving businesses, voluntary compliance, a fair and predictable tax administration, and trust between the government and the taxpayers. It requires the whole-of-government approach,” remarked Musasizi.
The Minister also revealed plans by Government to intensify efforts towards tax compliance through fighting corruption in Government in order to ensure that taxpayers willingly pay their taxes without questioning what the taxes collected are used for.
He noted, “The taxpayers must be willing to pay the taxes. Compliance should be a responsibility. I should not be policed or forced to comply. And how shall we achieve this? From the government side, we are working towards ensuring that the taxes you give us are spent in the right way, so that you are able to drive on the good road, you are able to access good medical care, we are able to make investments that bring jobs, the children are able to access good schools for free. Once we achieve this, and also minimise the corruption, you don’t feel happy when you hear that you are paid and other people have eaten.”
In his remarks, Emmanuel Katongole, Board Chairman, Uganda Revenue Authority urged the Authority to collect taxes fairly, efficiently, transparently, and respectfully and also sensitize citizens to promote a culture where tax compliance is understood as part of responsible citizenship.
Katongole explained, “Every shilling that is properly paid and collected reduces the burden of borrowing, every trillion we fail to collect domestically is a trillion we must borrow, or we must do without. Tax payment, therefore, is not a small matter. It is central to our country’s good standing, credibility, and sustainable progress. Uganda cannot achieve lasting transformation if citizens and businesses treat taxes as optional, secondary, or avoidable. Our development depends entirely on the timely and proper payment of taxes. Your compliance is not merely a legal requirement. It is a patriotic duty and a direct contribution to Uganda’s development.”
The Commissioner General of Uganda Revenue Authority, John Musinguzi revealed that in 2026/27, Government’s target is to improve the tax to GDP ratio from the current 14.2 percent to at least 16 percent.
“Last year, we moved from 13.7% to 14.2%, so we hope that in this year we’ll move a bit faster and move towards 16 percent. To put this in perspective, the tax to GDP ratio of 18 percent or at least 20 is what can sustain a country to meet its budget without sinking into debt every other year. So the ambition and the instructions we have from government is to ensure that within the medium term of two to three years, we are able to quickly get to a level where we will prevent our government from borrowing every year in order to be able to provide the services that we all need as citizens in this country.”
During the Dialogue, Government also launched the client service charter, that URA described as a significant milestone in URA’s service delivery journey and this charter sets out a clear service standard to help taxpayers resolve disputes without resorting to litigation.
Musinguzi explained, “We have also enhanced access to the tax exemptions that are provided in the law. We have improved our customs clearance processes and we expanded the reach of our digital platforms so as to support our taxpayers through the contact centre, through our touchpoint and other online platforms. The charter also provides clear channels for whistleblowing and reporting any staff who do not conduct themselves professionally. All this is to reinforce our commitment to the core values that we subscribe to, which is patriotism, integrity and professionalism.”
