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URA collects sh324b

By Vision Reporter

Added 28th September 2009 03:00 AM

UGANDA Revenue Authority (URA) has recorded sh6.94b tax surplus for August, just a few months after surplus collections fell to below sh1b.

UGANDA Revenue Authority (URA) has recorded sh6.94b tax surplus for August, just a few months after surplus collections fell to below sh1b.

By David Mugabe

UGANDA Revenue Authority (URA) has recorded sh6.94b tax surplus for August, just a few months after surplus collections fell to below sh1b.

In August, total net revenue peaked sh324.84b against a target of sh317.91b, which is a surplus collection of sh6.94b. Compared to July though, revenue surplus figures have declined by about sh14.92b.

The July collection exceeded targets by sh21.86b compared to August’s sh6.94b surplus. Officials said despite the effects of the contracted economy due to the global economic squeeze, operational reforms had helped the tax authority to maintain steady collections.

These reforms include, among others, the segmentation of tax payers and introduction of a one-stop service point at border posts. Announcing the monthly tax figures last week, the assistant commissioner for public and corporate affairs, Sarah Banage said the biggest catch was from direct domestic taxes which had a surplus of sh19.25b. Domestic taxes had a performance rating of 115.12% an equivalent of sh11b.

“Administrative initiatives are the reason for this surplus. Also, the start of the e-services means URA is available twenty four hours, seven days a week. People do not have to come here to file,” said Banage.

The cumulative net revenue collections grew at a rate of 30.73%, above the projected rate of 29.19%. Overall, direct domestic tax performed at 121.08% in August.

Surpluses were registered in all direct domestic tax-heads from Pay As You Earn, corporation tax, individual income tax, withholding tax and rental income tax.

URA also saw an increase in payment of management fees and dividends by firms. “Close monitoring of companies has enabled us collect arrears,” said Banage.

Across East Africa, URA had the highest growth at 32.01% followed by Rwanda at 8.9%, Kenya at 7.3% and Tanzania at 8.8%. URA was also the second highest performer at 102.18%, after Rwanda at 108.1%.

Kenya Revenue Authority came third at 93.4% while Tanzania stood at 86.6%. On the international trade tax, reduced imports of diesel to a low 5m litres compared to July 2009 partly affected the trade tax head projections.

Overall international trade tax hit sh167.8b against a projected sh180.64b. The improved performance of VAT and excise duty boosted the performance of indirect domestic tax head to a sh7b surplus, a 38% growth compared to August 2008.

The Internal expansion by beer, telecom and cement industry also boosted the indirect tax head. “The surplus comes from the remittances from firms that had concluded expansion activities and increase in sale volumes of most excisable products,” Banage said.

URA collects sh324b

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