KAMPALA, UGANDA — The Uganda Revenue Authority (URA) closed the 2024-25 fiscal year with a surplus of 262 billion shillings (about $70 million USD), exceeding its net target by 0.84% and achieving a 15% revenue growth compared to the previous financial year.
URA Commissioner General John Rujoki Musinguzi attributed the performance to a stable economy, improved administrative measures and strong taxpayer cooperation. The surplus alone could fund more than 2,600 parishes under the government’s Parish Development Model.
“In the financial year 2024/25, we were assigned a net target of Shs31.3 trillion. We were able to collect Shs31.6 trillion,” Musinguzi said, highlighting the turnaround from an earlier projected deficit.
Musinguzi stated that administrative efficiencies contributed more than 4.3 trillion shillings to revenue growth, aided by government policies over the past five years designed to help taxpayers recover from the COVID-19 pandemic, such as penalty waivers.
Gross domestic revenue collections reached 21.2 trillion shillings against a target of 21.1 trillion, a 15% increase from the 2023-24 fiscal year. International trade tax collections also saw a surplus, bringing in 11.1 trillion shillings against a target of 11 trillion, marking a 1.5 trillion shilling growth.
While the surplus performance is positive, Musinguzi noted the country’s tax-to-Gross Domestic Product (GDP) ratio stands at approximately 14.5%. The URA’s mission is to increase this to at least 20% in the short to medium term, surpassing the Sub-Saharan average target of 16%.
“Our mission is to grow the tax to GDP ratio to at least 20 percent in the short to medium term,” Musinguzi said. “We believe it is within our capabilities to grow the GDP ratio to 20 percent. This is our focus right now. We hope to get there with support of our taxpayers and all our partners.”
Musinguzi emphasized that future revenue growth would focus on expanding the tax base rather than increasing the burden on compliant taxpayers. This involves identifying untaxed economic activities, expanding the tax register and guiding struggling taxpayers toward compliance.
“We don’t want situations where other taxpayers are squeezed, yet they are already contributing their fair share. This is not right,” he stated, advocating for fairness in tax collection.
The URA plans to achieve this by encouraging the adoption of technologies like the Electronic Fiscal Receipting and Invoicing System (EFRIS), which helps track transactions and close revenue leakages.
“The fact that we are collecting only 14 percent of our GDP, means there is much room for growth,” Musinguzi concluded, underscoring the potential for increased tax contributions without additional pressure on existing taxpayers.
