KAMPALA, Uganda — Uganda’s tax body earned rare applause from Parliament for exceeding revenue targets, but legislators quickly turned the spotlight on deeper structural weaknesses, ranging from a low tax-to-GDP ratio to inefficiencies in domestic tax collection and administrative costs.
The mixed reactions emerged during a Finance Committee sitting Wednesday, March 25, 2026, chaired by Rwampara County MP Amos Kankunda, as it scrutinized the Uganda Revenue Authority’s Ministerial Policy Statement for the financial year 2026/2027.
Officials were led by Finance State Ministers Henry Musasizi, responsible for General Duties, and Amos Lugoolobi, responsible for Planning.
According to Musasizi, net revenue collections reached 31.643 trillion shillings against a target of 31.369 trillion shillings, a surplus of 264.87 billion shillings. That marked 15.87% growth compared with the previous financial year.
Domestic taxes contributed 21.252 trillion shillings, slightly above target, while international trade taxes also met expectations with 11.105 trillion shillings, both posting growth rates above 15%.
“Looking ahead, government has set an ambitious 41.513 trillion shillings revenue target, an increase of 4.286 trillion shillings from the current financial year, aligned with the national budget strategy outlined in the Budget Call Circular,” he said.
However, lawmakers questioned why the tax-to-GDP ratio remains below regional averages, a key indicator of revenue mobilization efficiency.
Dr. Keefa Kiwanuka, an NRM lawmaker from Kiboga East, challenged URA to explain the disconnect between an expanding taxpayer register and persistent public dissatisfaction.
“You report a widened tax base, but there is increasing public outcry. Are all those on the register actual taxpayers, and how are they identified?” he asked.
Separately, the committee praised the Uganda Retirement Benefits Regulatory Authority for enhancing regulation and supervision of the retirement benefit sector.
Minister Lugoolobi said the retirement benefits sector saw steady growth in the financial year 2024/2025, with total assets under management rising to 30.7 trillion shillings, a 21% increase, while the sector registered an average return on investment of 14.6%.
He said the sector also contributed 312 billion shillings in tax revenue, a 17% increase.
The ratio of retirement savings to gross domestic product improved from 12.2% to 13.6%, pointing to growing public confidence in pension savings and the sector’s increasing contribution to the economy.
The acting executive director of URBRA, Rita Nansasi Wasswa, said the authority has so far conducted retirement training for more than 324,900 individuals and provided technical support to the Ministry of Public Service to establish the Public Service Pension Fund.
She noted challenges faced by URBRA, including staffing constraints and limited financial independence, which affect its ability to respond promptly to emerging supervision, enforcement, prosecution and appeal activities.
MPs appreciated URBRA, noting that its efforts in investing within East Africa should be recognized but expressed concern over differing money values.
Geofrey Ekanya, an FDC lawmaker from Tororo North County, appealed to URBRA to ensure family members can easily access benefits.
Similarly, Patrick Ocan, a UPC lawmaker from Apac Municipality, encouraged URBRA to integrate health schemes in the formal and informal sectors.
URBRA has set out key priorities for the financial year 2026/2027, including strengthening investigative and enforcement capacity through risk-based supervision, recruiting staff for critical positions to improve efficiency, and building the capacity of trustees and service providers.
The authority will also support the establishment of a national long-term savings scheme targeting workers in the informal sector, a move expected to expand social protection and reduce old-age vulnerability. In addition, URBRA plans to scale up public awareness and financial literacy campaigns on retirement planning.
