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
Leaders meet over electoral reforms
The civil society, religious leaders, political parties and the labour movement have met in Kampala for the national dialogue to generate consensus on the necessary electoral and constitutional reforms to guarantee free and fair elections in 2016....
About 100 people massacred in DR Congo - MPs
About 100 people were slaughtered last week in the east of the DRC, the latest massacre to shake the restive region....
Uganda Road Fund wants efficiency in roads maintenance
The financial accountability guidelines are affecting the maintenance of roads and Uganda needs to emulate its neighbors if the Uganda Road Fund (URF) is to efficiently be managed.Engineer Michael Odongo, the URF executive director said that the Ethiopian and Kenya road funds which have been in exi...
Who will finally stop Kinawataka destruction?
Can decisions by the Cabinet and Parliament about the environment be ignored? The continued destruction of Kinawataka swamp in Banda, Kampala suggests they can....
City floods: body of woman who drowned found
The body of Irene Nakato, who slipped and fell into one of the secondary channels in Kawempe, has been found after a long search, KCCA has said....
Elderly defiler asks for lenient term saying he is
A traditional healer, sentenced to 15 years in jail for defiling a nine-year-old girl, has asked for a lenient jail term, saying he is now impotent....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter