National
URA collects sh3.86 trillion
Publish Date: Feb 09, 2014
URA collects sh3.86 trillion
Allen Kagina, URA commissioner general
  • mail
  • img
newvision

By John Odyek

Uganda Revenue Authority (URA) has recorded the lowest tax collection in the first half of this year posing concerns about funding government programs.


URA has recorded a tax deficit of sh246.93b for the first half of 2013/14, this is the lowest figure registered in the last five years according to Allen Kagina, URA commissioner general. URA collected sh3.86 trillion by end of December 2013 against sh4.11 trillion target set.

Economic experts have voiced concerns therefore about the challenges to funding the national budget. The experts said with the poor performance of the economy it is doubtful how much more revenue URA can collect from many distressed businesses and individuals some of whom feel they are overtaxed.

Kagina attributed the low revenue collections to the decline in economic growth which affected sectors like manufacturing, hotels and trade. She said the high inflation reduced expenditures by individuals and business. A poor performance in the exchange rate caused a revenue loss in international trade taxes.

“There is hope that during the second half of the year, revenue performance will improve as investment expenditure trickles down to businesses and security in South Sudan is restored,” Kagina said.

Kagina explained that many companies that were previously posting profits declared smaller profits or losses citing slowdown in the economy and low access to affordable credit. She mentioned that 325 companies that posted profis in 2011/1w registered losses in 2012/13 which had an impact on corporation tax performance in the first half of 2013/14.

She also criticized banks for shifting to investing in treasury bills due to the lower risks this poses as compared to giving out loans. “The banking sector was affected by a reduction in the industry loan books and the interest earned which translates into low taxable income,” she said.

Mohammed Ssempijja, a tax expert with Ernst & Young said government should address problems that make doing businesses hard in Uganda. Ssempijja said some of these problems include high interest rates, low stock of infrastructure, bureaucracies in licensing, difficulties in accessing utilities like water, electricity.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Oscar Pistorius sentenced to 5 years in prison
SOUTH African Paralympic athlete Oscar Pistorius today learns his sentence for shooting dead his girlfriend on Valentine''s Day last year, bringing an end to a seven-month trial that gripped the nation....
World Bank hails Uganda over Ebola fight
THE World Bank has applauded the way Uganda dealt with the Ebola epidemic in the year 2000, Maria Kiwanuka, the finance minister has revealed upon her return from Washington...
SDP drags EC to court over name change
THE Electoral Commission has been dragged to court for purportedly changing the name of Social Democratic Party to Party of National Unity without approval of its members...
Women appeal to African gov
A Women’s Conference meeting in Midrand, South Africa has appealed to African Union (AU) member states to provide financial and logistical support to the government of Nigeria...
MPs castigated over budget
THE secretary to treasury Keith Muhakanizi has castigated Parliament for delaying to pass the national budget of sh15trillion as it affected quarterly releases of funds...
Fare-thee-well: Kasiwukira laid to rest
Thousands of mourners, among them senior army and government officials, thronged Nanziga village to bury the late Eriya Ssebunya aka Kasiwukira...
Do Ugandan tycoons prepare their children to take over their business empires?
Yes
No
Can't Say
follow us
subscribe to our news letter