Uganda Outshines Kenya, Tanzania in Annual Revenue Collection

By Max Patrick Ocaido

Uganda has outperformed her neighboring countries of Kenya and Tanzania in the annual revenue collection for FY2018/2019.

These statistics showing the regional performance comparative is contained in the Annual press briefing report released by Uganda Revenue Authority (URA) for the period of July 2018 to June 2019.

According to the report, considering the EAC region, URA performed above target in revenue collections while Kenya Revenue Authority and Tanzania Revenue Authority performed below target at 96.2% and 86.30% respectively during the FY 2018/19. Other East African countries whose tax bodies performed above target are Burundi and Rwanda.

In FY 2018/19, Kenya had a revenue collection target of Ksh.1,832 billion while Tanzania had a target of Tsh18trillion.

During the FY 2018/19, URA was given a net revenue target of Shs16,358.76 billion grounded on a set of macro-economic assumptions. However, the authority headed by Doris Akol collected a whopping Shs16,617.65 billion, registering a growth rate of 14.95% (Shs2,161.53 billion) compared to last financial year.

“This was UGX 258.89 billion above the target, posting a performance level of 101.58%,” Doris Akol, Commissioner General, URA said.

According to the African Development Bank, the East Africa region continues to be the fastest-growing region in Africa with an estimated growth of 5.7% in 2018 and projected to 5.9% in 2019 and 6.1% in 2020.

Akol in her annual report attributed this progressive revenue collection to good performance in domestic tax revenue collection. During the FY 2018/19, URA collected Shs9,749.29 billion as Domestic taxes, registering a performance of 102.80% and Shs265.59 billion above the target.

“The major tax heads that recorded gross surpluses during the year were majorly direct taxes that include; corporation tax; that registered a surplus of UGX 331.37 billion mainly attributed to the transport, storage and communication sub-sector as well as the financial intermediaries and PAYE; that registered a surplus of UGX 148.60 billion mainly attributed to the public sector that performed at 127.96% of target,” Akol said.

Increase in the tax yield and good performance in the tax policy measures are other factors that URA has highlighted for the commendable performance in revenue collection. The major import items that registered an increase in tax yield during the FY 2018/19 compared to last year include; worn clothing (UGX 42.25 billion), cigarettes (UGX 29.27 billion), motor vehicles (UGX 28.36 billion), Footwear (UGX 27.00 billion) among others.

In this new financial year, URA has a revenue collection target of Shs20,344.13 billion which is inclusive of all revenue collected by URA, other Non-Tax Revenue (NTR) from MDAs and Aid in Appropriation (AIA).

Akol says that in this FY, URA will focus on the implementation of; Digital tax stamps, electronic physical devices/e-invoicing solutions, taxpayer education, and facilitation, establishing an integrated government to foster DRM efforts, leveraging data on revenue intelligence, improved border management, improved staff capacity and productivity, strengthening science investigations and legal service function.

“To successfully implement the above focus areas and strategies to realize the annual revenue target, it will, therefore, require a deliberate and concerted effort from all stakeholders involved in revenue collection. On the part of URA, we will continue to invest in efficient systems, quality people, non–bureaucratic processes and building strategic partnerships to ensure smooth expeditious service delivery,” she said.