TOP
Friday,August 07,2020 04:51 AM

URA registers sh121b deficit

By Vision Reporter

Added 19th May 2009 03:00 AM

THE Uganda Revenue Authority (URA) has posted a sh121.11b shortfall in tax collections from July 2008 to April 2009, barely a month to the presentation of the national budget.

THE Uganda Revenue Authority (URA) has posted a sh121.11b shortfall in tax collections from July 2008 to April 2009, barely a month to the presentation of the national budget.

By Sylvia Juuko

THE Uganda Revenue Authority (URA) has posted a sh121.11b shortfall in tax collections from July 2008 to April 2009, barely a month to the presentation of the national budget.

The deficit was attributed to a slow-down in consumption, depreciating exchange rate and outright fraud. April had a shortfall of sh13.24b, with sh293.04b collected against a target of sh306b.

However, compared the same month last year, revenue collections have grown by 11.23%. Sarah Birungi Banage, the URA assistant commissioner for corporate affairs, said indirect domestic taxes had a shortfall of sh17.71b due to lower than expected value added tax (VAT) and excise duty.

Local VAT registered a shortfall of sh5.75b, while excise duty posted a shortfall of sh5.87b. “Increased competition has forced some of the players to reduce prices, thus affecting the VAT base. We also have non-compliance, which is outright fraud.”

“But the change in consumption behaviour where people have reduced what they spend, has contributed to the under-performance of VAT and excise duty,” she told the media on Monday.

Banage said depreciation of the exchange rate had put pressure on the cost of importation of goods. This affected international trade taxes, which registered a deficit of sh1.82b.

Gross direct domestic taxes like pay as you earn (PAYE), corporate tax and tax on bank interest performed above target by 22%.

The number of registered vehicles declined by 25% to 2,038 in April from 2,725 in March. This affected fees and licences. She said net revenue projections for May 2009 were sh327.94b.

“It’s hard to say this is what we will have in June. But that’s our target for May, let’s see how it goes. We are doing our best to bring in what is remaining out there. We are monitoring the arrears and tightening the loopholes so that we can meet our targets,” Banage explained.

She noted that due to the challenging situation, URA had met with some importers to explore options of paying in installments.

URA registers sh121b deficit

Related articles

More From The Author

More From The Author