Kampala – Tax body, Uganda Revenue Authority (URA) has registered net revenue collections of UGX4T against a target of UGX2.9Trn reflecting a performance percentage of a whopping 135.69% during the first quarter of the FY2020/21 from July to September 2020.
Uganda Revenue Authority Commissioner General John Musinguzi made this revelation yesterday while launching the taxpayer appreciation season which will run from October to December 2020 under the theme “Celebrating the Taxpayers of Uganda”.
Musinguzi also disclosed that the country registered revenue growth of UGX64.80B (1.64%) during the same period compared to July September 2019.
During the season the Authority will profile the top 10 most compliant taxpayers per district, the top 50 by region and top 15 at the national level, and they will be rewarded.
Musinguzi attributed the reasons for the performance of the July- September performance to local excise duty which contributed a surplus of UGX 107.87B which was mainly from mobile money transfers at UGX17.52B, phone talk time at UGX12.51B, beer consumption at UGX27.69B, and Over the top (OTT) at UGX8.27B.
“The surplus revenue collections were due to increased transactions via phone through voice and text owing to the limited movement of people amidst the COVID-19 pandemic that set in the country in March, and the 7.34%increased beer production was prompted by increased sales of 6.5%,” CG Musinguzi revealed.
Among the other major contributor s to the surplus, revenue collection was the implementation of the Digital Tracking solution (DTS) that boosted revenue collections and aided the enforcement and tracking of locally manufactured goods and imported products.
However, there was a deep in revenue collected from the services sector that include accommodation and food sectors which declined by 58.82%, education sector declined by 31.94%, revenue from Arts, entertainment and recreation sector declined by 55.59%, owing to the slowdown of businesses in these sectors due to the lockdown imposed by government to curb the spread of COVID-19.
When asked how the Authority will ensure that there is total compliance by local manufacturers, and importers to the Electronic Fiscal receipting Invoice System (EFRIS) that was introduced in July but met with a pinch of salt.
The Commissioner of Domestic Taxes at URA, Patrick Mukiibi had this to say, “The manufacturers are one of our key stakeholders, and we have engaged them before and we now have weekly updates on the engagements that we do with them, and this is helping us to get ready for the roll outcome 1st January 2021,”.
He also said that they receive feedback from them about any challenges that they face with implementing the system, keeping in the timeline for the roll-out of the system next year.
- INTERVIEW: Fintech, bank partnerships will deepen financial inclusion – MTN GM Mutana
- MP Seeks Action against Embattled EOC boss for Evading court
- INTRIGUE: Singer Julie Mutesasira Legalises Bonking, Marries fellow Woman
- Defilement: Court rejects Rev. Kalule ‘Negative’ DNA Report
- LUWERO: Two UPDF soldiers Remanded over Murdered Farmer
Currently, there are 152 local manufactures who have registered for the Digital Tracking Solution for their products which include beverage, breweries, distillers and one tobacco company. There are also 42 importers who have registered their products on the system.