URA Registers 13% VAT Growth

The Uganda Revenue Authority (URA) reported a 13% increase in Value Added Tax (VAT) for the fiscal year ending 30 June 2023. This was highlighted in a report by the Committee on Commissions Statutory Authorities and State Enterprises (COSASE), which attributed the growth to increased local production of VAT-attracting goods and services.

Sugar production saw a Shs7.79 billion surplus, largely due to the effective enforcement of the Electronic Fiscal Receipting and Invoice Solutions (EFRIS). Presenting the report on October 1, COSASE Chairperson, Medard Sseggona, recommended extending EFRIS to all eligible taxpayers following comprehensive sensitisation.

The committee noted that the rollout of EFRIS is overdue, as registration was meant to conclude by June 2014 with full implementation set for July 2024. The committee stressed the need to fast-track EFRIS for better tax administration efficiency. However, a lack of taxpayer education has led to apathy and resistance against the new VAT collection system. Sseggona emphasized the importance of increasing taxpayer awareness to improve compliance.

Lillian Paparu, Arua District Woman Representative, proposed that local leaders be involved in tax education to bridge misunderstandings between URA and business communities.

In a related development, COSASE’s report criticized the Uganda Wildlife Authority (UWA) for poor accounting practices, citing overspending by Shs4.7 billion beyond the approved budget. The report revealed unaccounted expenditures totaling Shs462 million, with missing supporting documents and vouchers.

MPs recommended that entities with weak internal accounting should submit non-tax revenue collections to the Consolidated Fund to curb potential fraud. Fredrick Angura highlighted revenue leakages, noting improved non-tax revenue collection once URA took over the process.