Africa-Press – Uganda. Uganda’s Finance Minister, Matia Kasaija, has highlighted the potential of the Uganda Revenue Authority’s (URA) new Digital Strategy to bolster the country’s tax-to-GDP ratio to an ambitious 20% over the next two years.
Addressing attendees at the strategy’s unveiling in Nakawa, Kampala on Friday, Kasaija emphasized Uganda’s vast untapped resources and the country’s potential to finance its developmental needs without external borrowing. “A thriving nation like Uganda shouldn’t be shackled by external debts when it possesses the means to fuel its growth,” he remarked. He further entrusted URA with the pivotal role of accelerating government initiatives to provide job opportunities for the Ugandan youth.
The Digital Strategy, also known as the 2024-27 Digitisation and IT Roadmap, is an emblem of URA’s commitment to modernization. With its primary objective is streamlining tax services, ensuring inclusivity across all tax segments, and leveraging robust technologies to be readily accessible for all taxpayers.
Mr. Robert Mutebi, URA’s Commissioner of IT and Innovation, shed light on the strategy’s innovative backbone, emphasizing its potential to revolutionize customer experiences and exponentially expand the outreach of tax services. “Our primary focus is to instil confidence in taxpayers by providing clear, accurate information and utilizing the latest technologies to pinpoint and rectify tax irregularities swiftly,” Mutebi elaborated.
Central to this strategy is the continuous endeavour of the URA to refine tax processes, enhance quality control, and staunch revenue losses. Reflecting on the past, URA has seamlessly merged ICT into tax management, often being at the forefront of the government’s digital evolution.
In its journey to fortify the tax system, URA introduced several digital interventions under the Domestic Revenue Mobilisation Strategy, which significantly broadened the tax net, assimilating a larger section of the populace into the taxable bracket. Noteworthy among these initiatives are the Digital Tax Stamps (DTS), implemented by SICPA, the Electronic Fiscal Receipting and Invoicing System (EFRIS), and the transition to digitize rental income tax. These initiatives stand as testaments to URA’s dedication to minimizing tax discrepancies and heightening compliance.
Specifically, the introduction of DTS in 2019 marked a turning point in excise tax collection. The 2022/23 fiscal year alone witnessed an impressive surge of Shs157.9b in these collections, translating to a growth of 24.2%. Such milestones underscore the transformative power of digital tools in enhancing tax administration and amplifying domestic revenue.
Supporting this, a report by the World Health Organisation accentuates the instrumental role of digital tax stamps in curbing revenue losses and ensuring product traceability. The study states, “Digital tax stamps are a potent weapon against tax evasion. They contain crucial details – from brand specifics to the manufacturer’s data, ensuring end-to-end product traceability.”
The strategy’s impact is palpable, with DTS adoption skyrocketing – a remarkable rise from 200 enterprises in 2020 to an impressive 1,171 enterprises presently integrating this solution. This trajectory affirms the boundless potential and promise of digital advancements in Uganda’s tax landscape.
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