KAMPALA — The Uganda Revenue Authority (URA) has issued a strong appeal for fairness in the country’s taxation system, cautioning against placing excessive tax pressure on already compliant taxpayers. The message comes in the wake of URA’s impressive revenue performance for the 2024/25 financial year, during which the authority surpassed its target by collecting Shs31.6 trillion against a goal of Shs31.3 trillion—registering a surplus of Shs262 billion and reflecting a 100.84% performance rate. This marked a 15% increase in revenue compared to the previous year.
URA Commissioner-General John Rujoki Musinguzi attributed this growth largely to improved administrative efficiency, strategic reforms, and enhanced taxpayer education, rather than aggressive collection methods. He emphasized that the authority’s long-term strategy is to expand the country’s tax base, raising Uganda’s tax-to-GDP ratio from the current 14–14.5% to 20%, without penalizing honest contributors. “We don’t want situations where other taxpayers are squeezed, yet they are already contributing their fair share,” he said.
According to Musinguzi, over Shs4.3 trillion of the revenue collected was generated through better internal systems and policy clarity. Key initiatives have included administrative reforms, penalty waivers, improved audit practices, and targeted engagement with sectors that were previously underperforming in compliance. The Commissioner-General noted that URA is now focused on identifying untapped economic segments and bringing them into the formal tax system, particularly among small and medium enterprises.
To build trust and foster voluntary compliance, URA has intensified its outreach efforts through the ongoing Taxpayer Appreciation Season. The initiative includes regional visits, open forums, and training workshops aimed at clarifying tax obligations, addressing disputes, and improving transparency in assessment and refund procedures. Musinguzi stated that creating a predictable and supportive environment for taxpayers is vital to sustaining revenue gains without triggering resentment or resistance.
Technology has also played a critical role in URA’s improved performance. Digital tools such as the Electronic Fiscal Receipting and Invoicing System (EFRIS), real-time audit systems, and the Real-Time Tax Advisory platform have helped reduce errors, eliminate loopholes, and enhance the accuracy of tax filings. The advisory system in particular provides immediate feedback to taxpayers when discrepancies are detected, enabling quick corrections before penalties are applied. These innovations are aimed at ensuring compliance without unnecessary penalties or intimidation.
At the same time, URA has intensified enforcement against tax evasion and malpractice. Operations targeting smuggling networks and the misuse of Taxpayer Identification Numbers (TINs) are being expanded to seal revenue leakages and ensure that compliant taxpayers are not placed at a competitive disadvantage. Musinguzi warned that continued abuse of the system, particularly in VAT compliance, undermines public trust and the integrity of the tax framework.
As the financial year progresses, URA is committed to refining its balance between revenue generation and taxpayer protection. The authority’s message is clear: Uganda’s tax system must grow through fairness, inclusion, and transparency—not by overburdening those who are already playing by the rules.