Uganda Revenue Authority (URA) Commissioner General, John R. Musinguzi (pictured above) has reiterated efforts being made to rebuild the tax body’s credibility as a trusted Partner.
“The importance of this agenda is continuously being emphasized by several initiatives designed to address the all issues that affect the brand of URA. Currently, a robust Culture Transformation Program is underway to foster the Zero Tolerance to Corruption (as repented of earlier) including ideological reorientation using the 5Rs (Reflect, Rethink, Repent, Reset and Recommit),” Musinguzi said.
He added: “We recognize that this requires a concerted effort from all stakeholders, and we will accordingly judiciously drive this internally but also engage and work with all external stakeholders including taxpayers, third party agents, stakeholders, and the citizenry to ensure that this culture is fully embedded and becomes our DNA, and Identity in URA and all stakeholders we collaborate with in fulfilling our sacred Mandate.”
Musinguzi made the remarks on Wednesday during the thanksgiving service to celebrate 30 years of URA. The event that was graced by President Yoweri Museveni as Chief Guest and the First Lady and Education Minister, Janet Kataha Museveni took place at Kololo Independence Grounds.
Musinguzi highlighted a number of innovations URA has undertaken over the years to grow revenue collections.
He said over the first 10-year period, revenue collections increased from UGX 180.46 billion in the FY 1991/92 to UGX 1,075.15 billion in the FY 2000/01.
“On average, revenue grew by 24.04% annually in the period 1991 to 2000,” Musinguzi said.
He revealed that revenue collections grew by an average of 16.90% annually in the period 2001 to 2010.
“In the FY 2010/11, revenue collections were UGX 5,114.2 billion compared to UGX 1,212.5 billion collected in the FY 2001/02,” the URA boss said.
Revenue collections consistently grew at an average rate of 14.33% annually from 2011/12 to 2020/21, he said.
“The Tax to GDP increased from 10.32% in the FY 2011/12 to 12.99% in the FY 2020/21,” Musinguzi noted.
He said URA collected net revenue of UGX 19,263.00 billion and posted a growth in revenue of 14.99 percent in comparison to the FY 2019/20 and an estimated tax to GDP ratio of 12.99 percent[ Tax to GDP = Net Tax UGX 19,263 Bn / 148,278 Bn GDP at market prices.
“In real terms, this reflects a growth in revenue of UGX 2,511.36 billion, the highest growth registered in the last four years amidst the Covid-19 pandemic,” he said, adding that during the FY 2020/21, 189,377 new taxpayers were added to the taxpayer register. By the end of the FY 2020/21, the taxpayer register had 1,783,493 taxpayers.
Musinguzi said the three decades of URA marks the beginning of an exciting Transformational Journey that was occasioned by the re-envisioning from being a beacon that is a model of innovation and excellence to the HIGHER PURPOSE and HIGHER CALLING of Uganda’s economic independence in which is aligned to the sacred mandate for which URA was established.
“This transformation journey firmly sets us on course to foster revenue mobilization in a bid to fully finance Uganda’s national budget to free our Nation from donor dependency, encourage a healthy flow of investment, and address fairness and transparency in the tax administration system.
Musinguzi paid special tribute to the valued Tax paying community, that are the bedrock of URA’s contribution to national development. “Our spiraling revenue yield over the years, attests to the hardwork, entrepreneurial culture, and commitment of Uganda’s tax paying community, who have consistently fulfilled their civic obligation and contributed to National Development,” Musinguzi said.
URA Board Chairman Juma Kisaame appreciated the Development Partners who have offered support to URA in various ways over the 30-year journey so far.
“To all the former members of the URA Board of Directors since 1991, thank you for the strategic guidance given to the management teams of URA as the years rolled by. It is through great minds working in sync that we can attain continued and sustained growth over generations with one team handing over the baton to another set of great minds to make their contribution,” Kisaame said.
He also thanked taxpayers, who have duly fulfilled their obligations in accordance with the tax laws of Uganda.
“We recognize and appreciate the immense contribution you have made to the development of our Country. We shall continue to simplify our processes and systems and roll out initiatives geared towards giving you a delightful experience. Access to information is another strategic canon that we are keen to guarantee you through creative processes to avail you with as much transparency as possible during the execution of our work,” he said.
Finance Minister Matia Kasaija commended URA for the good revenue results so far achieved.
“Even with over 50% reduction in business activities countrywide, URA managed to collect UGX 19,263 billion in FY 2020/21 registering a 14.99% revenue growth and tax to GDP of 12.99%. I believe you have put in extra innovative efforts in order to achieve this. Thank you URA team,” Kasaija said.
Due to the COVID-19 disruptions that started in March 2020, the country registered the slowest GDP growth rate of 3% in FY 2019/20, Kasaija said.
“However, for FY 2020/21, we slowly picked up and achieved a growth rate of 3.3%. The slow growth is attributed to the lockdown effects on key sectors such as Education, Tourism, and Entertainment. These have had an adverse effect on domestic consumption, lowered Uganda’s exports to regional and international markets and as such many businesses have suffered and some even closed shop. This is no good news to the tax collecting body,” Kasaija said.
