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Hard Times As Gov’t Raises Tax Revenue Collection Target For URA To Shs29.3 Trillion In 2023/24

The URA Commissioner General, John Musinguzi

The Ministry of Finance, Planning and Economic Development has revised the projected revenue collection target for Uganda Revenue Authority (URA) from the Shs28.9Trn it had  earlier projected to Shs29.3Trn to finance the 2023/2024 national budget.

The revelation was made by Henry Musasizi, Minister of State for Finance (General Duties) while appearing before Parliament’s Finance Committee to present the 2023/2024 Ministerial Policy statement for URA.

“The projected revenue collection target for 2023/2024 is Shs29. 3Trn. The ultimate goal is to achieve the intimate tax to GDP ratio of about 18% at the end of the Domestic Revenue Mobilisation Strategy Implementation,” Musazizi said.

He added: “Therefore, we shall be deliberate in pursuing all these interventions. I would like to urgent all our stakeholders to support us as we can only effectively deliver our mandate of moblising revenue for national development if we work together.”

However, Jane Avur (Pakwach DWR) tasked URA officials to commit to the latest changes in order to ensure that the Ministry hasn’t ambushed the Authority with the new changes.

“We realize that from the collection of taxes, it is about Shs29. 3Trn and URA is saying the target is Shs28.9Trn and that causes a discrepancy, we need a commitment from URA that they will be able to collect what was said,” she said.

The URA Commissioner General, John Musinguzi confirmed that the Authority will collect the set target, to which Musasizi informed the Committee that URA has no choice but to abide by the set target.

The developments comes at the time figures from half year performance by URA for FY2022/2023 indicate that in six months, URA has collected revenue to a tune of Shs11.670Trn, posting a deficit of Shs94. 80Bn the Authority anticipated to collect within the same period.

In the 2023/2024 national budget, URA’s budget is expected to rise from Shs539.16Bn to Shs619.99Bn, and o this, Shs205.50Bn will go to payment of wages, Shs290.28 for non wage, while Shs44.06Bn is for development.

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