Revenue collections to drop by sh6 billion
Apr 26, 2006
THE Uganda Revenue Authority (URA) predicts a cumulative shortfall in collections of sh5.9m this financial year due to poor performance of some tax heads, a revenue and trade performance report for the third quarter shows.
By Peter Kaujju
THE Uganda Revenue Authority (URA) predicts a cumulative shortfall in collections of sh5.9m this financial year due to poor performance of some tax heads, a revenue and trade performance report for the third quarter shows.
Allen Kagina, the URA chief, told a regional conference over the weekend that power shortages, had affected production processes in various sectors resulting into low outputs and job cuts.
She said this had affected mainly the Value Added Tax (VAT) and Pay As You Earn (PAYE) levy.
“Net URA collections (excluding government taxes and refunds) over the three quarters of this financial year totalled sh1,592.73b against a cumulative target of shh1,599.50b posting a shortfall of sh6.77b,†the report says.
The report said Corporation Tax, tax on bank interest, local excise duty and petroleum duty were among the areas that did not perform well during the period while import duty, VAT on goods, PAYE and VAT on imports performed well.
The report, however, said exports to the East African Community region grew by 136.63% with Tanzania taking the lead.
It said exports to the rest of the world jumped by 45.84%.
Imports from the East African region grew by 35.32%, the same as those from other countries.
The report said the domestic tax share to total revenue, which had picked to exceed that of international trade during the first two quarters, slipped to 49.84% in the third quarter.
There were improved collections in the first and second quarter but the third quarter collections fell short of target by sh17.1b due to poor performance in February, the report said.
It said PAYE, VAT on goods and import duty would be the best performing tax heads as the financial year winds up.
According to the report, the worst performing tax lines were Corporation Tax, which recorded a cumulative shortfall of sh21.44b as most of the top 10 contributors to the tax head paid less than what they paid the previous financial year.
Fees and licenses, also did poorly.
The revenue ratio to GDP still lags behind at 12% compared to the target of 24% aimed at attaining self-reliance, the report issued on Tuesday said.
THE Uganda Revenue Authority (URA) predicts a cumulative shortfall in collections of sh5.9m this financial year due to poor performance of some tax heads, a revenue and trade performance report for the third quarter shows.
Allen Kagina, the URA chief, told a regional conference over the weekend that power shortages, had affected production processes in various sectors resulting into low outputs and job cuts.
She said this had affected mainly the Value Added Tax (VAT) and Pay As You Earn (PAYE) levy.
“Net URA collections (excluding government taxes and refunds) over the three quarters of this financial year totalled sh1,592.73b against a cumulative target of shh1,599.50b posting a shortfall of sh6.77b,†the report says.
The report said Corporation Tax, tax on bank interest, local excise duty and petroleum duty were among the areas that did not perform well during the period while import duty, VAT on goods, PAYE and VAT on imports performed well.
The report, however, said exports to the East African Community region grew by 136.63% with Tanzania taking the lead.
It said exports to the rest of the world jumped by 45.84%.
Imports from the East African region grew by 35.32%, the same as those from other countries.
The report said the domestic tax share to total revenue, which had picked to exceed that of international trade during the first two quarters, slipped to 49.84% in the third quarter.
There were improved collections in the first and second quarter but the third quarter collections fell short of target by sh17.1b due to poor performance in February, the report said.
It said PAYE, VAT on goods and import duty would be the best performing tax heads as the financial year winds up.
According to the report, the worst performing tax lines were Corporation Tax, which recorded a cumulative shortfall of sh21.44b as most of the top 10 contributors to the tax head paid less than what they paid the previous financial year.
Fees and licenses, also did poorly.
The revenue ratio to GDP still lags behind at 12% compared to the target of 24% aimed at attaining self-reliance, the report issued on Tuesday said.