Revenue collections fall by sh2.8 billion
Feb 28, 2007
REVENUE collections fell by sh2.8b in the first half of the 2006/7 financial year, Fred Omach, the finance state minister, disclosed on Tuesday.
By Mary Karugaba
REVENUE collections fell by sh2.8b in the first half of the 2006/7 financial year, Fred Omach, the finance state minister, disclosed on Tuesday.
Omach told MPs on the budget committee that the Uganda Revenue Authority (URA) collected sh1.239.38b against a target of sh1.242.16b, reflecting a deficit of sh2.78b.
The minister attributed the deficit to “slight underperformance†of corporation tax, import duty, excise duty and VAT on local goods. “We had problems with sugar prices which greatly affected the economy.
“But we are now on track and hope to do much better for the remaining months,†Omach promised.
During this period, URA collected sh1.239.4b against a target of shs1242.16, representing a 99.78% achievement rate.
He added: “The January performance was sh208.08b against a target of sh195.65b, representing an achievement rate of 106.35%.†Omach was reaction to MPs query on why URA performed poorly during the half year of the 2006/7 financial budget.
MPs also put the minister to task to explain why there was ‘miserable’ performance of government taxes with the Government remitting just 38% of the budget.
The minister explained that since the introduction of Gross Tax Payment System last July, payment of taxes is based on submissions by accounting officers based on actual requirements and verification by URA.
However, he said despite the release of 50% of the budget provisions for taxes to most spending agencies, only 20% had been utilised by the accounting officers.
Omach also revealed that there were cheques that were signed on behalf of URA leading to loss of money.
MP Henry Banyenzaki demanded to know whether the ministry has brought the culprits to book. But the minister did not offer an explanation.
REVENUE collections fell by sh2.8b in the first half of the 2006/7 financial year, Fred Omach, the finance state minister, disclosed on Tuesday.
Omach told MPs on the budget committee that the Uganda Revenue Authority (URA) collected sh1.239.38b against a target of sh1.242.16b, reflecting a deficit of sh2.78b.
The minister attributed the deficit to “slight underperformance†of corporation tax, import duty, excise duty and VAT on local goods. “We had problems with sugar prices which greatly affected the economy.
“But we are now on track and hope to do much better for the remaining months,†Omach promised.
During this period, URA collected sh1.239.4b against a target of shs1242.16, representing a 99.78% achievement rate.
He added: “The January performance was sh208.08b against a target of sh195.65b, representing an achievement rate of 106.35%.†Omach was reaction to MPs query on why URA performed poorly during the half year of the 2006/7 financial budget.
MPs also put the minister to task to explain why there was ‘miserable’ performance of government taxes with the Government remitting just 38% of the budget.
The minister explained that since the introduction of Gross Tax Payment System last July, payment of taxes is based on submissions by accounting officers based on actual requirements and verification by URA.
However, he said despite the release of 50% of the budget provisions for taxes to most spending agencies, only 20% had been utilised by the accounting officers.
Omach also revealed that there were cheques that were signed on behalf of URA leading to loss of money.
MP Henry Banyenzaki demanded to know whether the ministry has brought the culprits to book. But the minister did not offer an explanation.