Debt recovery mechanisms contribute to growth revenue in 2020

Uganda Revenue Authority (URA) Commissioner General, John Musinguzi Rujoki
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According to the Uganda Revenue Authority (URA) Commissioner General, John Musinguzi Rujoki, the debt recovery mechanisms contributed a large position towards the spike in the revenue collected in the year of 2020.

Basing on statistics proved by the tax regulatory body, debt recovery mechanisms Les to the recovery of UGX 1 billion in the annual taxes collected throughout the country during Financial Year, 2020/21.

Additionally, he  said that these mechanisms which were put in place as an alternative dispute resolution resulted into the collection of UGX 365 billion as well as the voluntary disclosure initiation to mention but a few.

Some of the implemented mechanisms include Digital Tracking Solutions (DTS) which is said to have boosted the revenue by 16.89% and Electronic Fiscal Receipting Solution (EFRIS) which also boosted performance as he said;

“The implementation of the Digital Tracking Solutions (DTS) and the Electronic Fiscal Receipting Solution (EFRIS) boosted performance. DTS contributed to the 16.89 percentage growth in Excise Duty collections by aiding the enforcement and tracking of locally manufactured and imported goods.”

EFRIS on the other hand contributed a 14.73% increment towards the growth of VAT collection as he went ahead to elaborate saying;

“ EFRIS contributed to the 14.73 percentage growth in VAT collections, through relaying real-time taxpayer transaction details to URA, thereby minimizing underreporting of VAT collected from consumers. It should be noted that both technologies are still being rolled out and not yet fully enforced.”

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In the Financial year 2020/21, Uganda Revenue Authority collected net revenue equivalent to UGX 19.2 billion which represented a GPD growth of 14.99%, the highest to be recorded in the last four years.

“URA collected a net revenue of shs19263 billion(shs19.2trillion) and posted a growth in revenue of 14.99% in comparison to the FY 2019/20 and an estimated tax to GDP ratio of 12.99 percent. In real terms, this reflects a growth in revenue of UGX 2,511.36 billion and growth in the Tax to GDP ratio by 1%. This the highest growth registered in the last four years,” said Mr. Rujoki.

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While passing the 2021/22 Financial year budget, seven new taxes were imposed upon Ugandans with an aim of reducing on the country’s debt burden which include the 100 shillings tax per liter of fuel.

Among these, the most famous tax seemed to have been the 12% tax imposed on internet bundles meant to substitute the Over The Top Tax which had proved to be more of a liability thanks to the VPNs which caused a mass boycott among most internet consumers.

Hopefully, these newly imposed tax’s shall further boost a growth in the net revenue collections for the financial year 2021/22.

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