KAMPALA – The Uganda Revenue Authority (URA) is placing a significant wager on advanced digital systems and intensified compliance mechanisms to achieve an ambitious revenue collection target of Shs36.7 trillion for the financial year ending June 2026. This monumental goal represents a 17% increase, or an additional Shs5.3 trillion, from the Shs31.3 trillion collected in the previous fiscal year.
To hit this formidable target, the URA is accelerating its efforts to seal revenue leakages and broaden the tax base by “betting big” on technological innovation and enhanced enforcement.
URA Commissioner General John Rujoki Musinguzi stated earlier this month that while reaching the new target is within grasp, it hinges on significantly improving tax administration and compliance through digital advancements and data-driven strategies. Speaking at the release of the 2024/25 financial year revenue performance report, Musinguzi highlighted how digital tools have already played a pivotal role, contributing to an additional Shs262.43 billion collected in the past year.
Central to this technological offensive are digital tax stamps and the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), which have proven instrumental in plugging leakages in excise duty and VAT collections. The URA plans to deepen the integration of these systems, coupled with cutting-edge technologies such as data analytics, artificial intelligence, and risk-based assessments, to proactively identify potential taxpayers and areas of non-compliance.
“This marks a shift from reactive to predictive tax administration,” Musinguzi affirmed, underscoring URA’s strategic pivot towards smarter and more proactive enforcement.
Digital tax stamps, in particular, have notably improved compliance in high-risk sectors like alcoholic beverages, including spirits and kombucha, by effectively curbing illicit trade and protecting legitimate businesses.
President Yoweri Museveni last month acknowledged the positive impact of digital systems, noting a decline in tax non-compliance due to initiatives like digital tax stamps and EFRIS. However, he emphasized that current revenue levels remain inadequate to fully fund the nation’s development needs. In response, the government intends to bolster anti-corruption efforts through frequent audits of URA operations and expanded use of digital tools for real-time monitoring of taxable transactions.
Despite the impressive performance in the 2024/25 financial year, where collections surpassed targets by Shs262.43 billion (a 15.86% growth), the URA recognizes it must “comb more corners” to meet the demanding new targets. The Domestic Revenue Mobilisation Strategy has pinpointed excise taxes as a high-potential area, with the digital tax stamps system (managed by SICPA Uganda) continuing to revolutionize verification by affixing tamper-proof stamps on excisable goods for real-time tracking, thereby significantly reducing evasion and enhancing transparency across key sectors.
