John R. Musinguzi, the URA Commissioner General
Uganda Revenue Authority (URA) collected net revenue of Shs19.263 trillion and posted a growth in revenue of 14.99% in comparison to the FY 2019/20 and an estimated tax to GDP ratio of 12.99 percent[ Tax to GDP = Net Tax Shs19,263 Bn / 148,278 Bn GDP at market prices].
Addressing the press on Thursday, John R. Musinguzi, the URA Commissioner General said 71% of the revenue was generated from four sectors.
The wholesale and retail trade sector had the biggest contribution, which amounted to Shs5.783 trillion (29.43%). It was followed by manufacturing sector with a contribution of Shs4.461 trillion (22.70%). The Information and communication sector contributed Shs2.059 trillion (10.48%), while Shs1.643 trillion (8.39%) was generated from the financial and insurance services sector.
Musinguzi attributed the growth in manufacturing to government policy of manufacturing and import substitution.
However, there was a decline in some sectors.
These sectors include art and entertainment, accommodation, food and education. According to URA, Revenue from Accommodation and food service activities declined by 37.38%, Education sector by 10.35%, Arts entertainment and recreation by 31.39%.
The decline is attributed to slow down in business in these sectors resulting from COVID-19 pandemic impact.
But despite the tough times brought about by the Covid-19, Musinguzi says the 14.99% revenue growth is a commendable performance in terms of revenue collection.
