Africa-Press – Uganda. The Uganda Revenue Authority (URA) is racing against time to collect Shs 4 trillion in just one month in order to meet its ambitious Shs 31.36 trillion domestic revenue target for the 2024/2025 financial year, which ends in June.
So far, the tax body has managed to raise Shs 27.36 trillion, leaving a critical shortfall that has drawn skepticism from tax experts and concern among business owners.
Speaking as Chief Guest at the Uganda National Journalism Awards 2025, URA Commissioner General John Musinguzi Rujoki acknowledged the challenge but expressed confidence in the Authority’s ability to bridge the gap before the fiscal year closes.
“As of this morning, we have so far collected Shs 27.36 trillion against a Shs 31.36 trillion target for the year, meaning that we are short of about Shs 4 trillion,” Musinguzi told attendees.
“We are very optimistic that we shall meet this target before the end of June.”
Experts Caution on Feasibility
However, not everyone shares URA’s optimism. Uthuman Mayanja, Senior Partner at PwC Uganda, noted that the revenue target may be too ambitious under the current economic climate.
“With an economy that is less formal and global economic headwinds this turbulent, it would be hard for URA to meet this target,” Mayanja said.
Despite ongoing digitisation initiatives like the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) and Digital Tax Stamps (DTS), Uganda’s tax base remains narrow. Experts argue that URA continues to rely heavily on a small pool of compliant taxpayers, while a large segment of the economy—particularly in the informal sector—remains untapped.
“Apart from those interventions, more needs to be done to increase the tax register, because these taxes have been falling on the same small tax bracket,” Mayanja added.
The scale of this year’s revenue challenge becomes clearer when placed against URA’s recent performance:
FY2022/2023
Target: Shs 25.15 trillion
Collected: Shs 25.2 trillion (Target surpassed)
FY2023/2024
Target: Shs 29.65 trillion
Collected: Shs 28.5 trillion (Fell short by about Shs 1.15 trillion)
This year’s target of Shs 31.36 trillion represents a significant leap nearly Shs 2.7 trillion more than last year’s actual collections raising questions about the sustainability and realism of year-on-year increases in revenue targets.
Uganda’s national budget for FY2024/2025 stands at a staggering Shs 72.1 trillion, with the domestic revenue target covering only 23.7% of it.
The remaining 56.5% is expected to be financed through borrowing and non-tax revenue, increasing the pressure on the government to boost internal revenue collection and reduce dependency on borrowing.
As URA intensifies its enforcement measures to hit its target, parts of the business community are feeling the heat. New regulatory changes, including the ban on group age cargo, have disrupted operations for many importers and SMEs.
The fear of non-compliance penalties looms large, especially as the taxman pursues the final Shs 4 trillion within a tight 31-day window.
Some businesses worry that the aggressive revenue drive, if not handled carefully, could lead to unintended closures and economic strain particularly in the informal and SME sectors.
With June fast approaching, all eyes are on URA. The final weeks of the financial year will test the resilience of Uganda’s tax administration system, the responsiveness of its economy, and the effectiveness of digitisation and enforcement efforts in expanding the tax base.
For now, URA remains optimistic. But the gap is wide, the clock is ticking, and the stakes—both fiscal and political—couldn’t be higher.
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