New Vision (Kampala)

Uganda: Revenue Authority Rewards Top Tax Payers

16 September 2007


Kampala — Uganda Revenue Authority (URA) marked its 16th anniversary by rewarding the top taxpayers for honouring their tax obligations in the last financial year, reports Peter Kaujju.

MTN Uganda that paid sh174b and has been the leading tax payer for last three years, took the excel trophy.

Shell Uganda and beer maker Uganda Breweries that paid sh140b and sh101b respectively, were also rewarded under the excel category.

URA's commissioner general, Allen Kagina, during the third tax payer appreciation day over the weekend, said progress had been made in the remittance of taxes.

"We have come a long way. The reforms made since 2005 have borne fruit as evidenced in the collections. URA has been performing above target for the past three years, with a surplus of over sh70b."

She said they had collected sh10b in surplus in the first two months of the year.

The industry state minister, Ephraim Kamuntu, said Ugandans were known to evade taxes and smuggle goods but he credited URA for changing this perception through increased revenue collections.

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"URA's transformation in the past three years is a unique example, which should be followed by other institutions. There is a long journey to cover in tax collection since our tax-to-GDP ratio is below the sub-Saharan average of 18%. For every successive year, we encourage URA to break its record in collections," he said.

Kamuntu advised the tax body to continue partnering with the private sector since it is largely dependent on it for taxes.

Kamuntu said the narrow tax base as a result of the informal sector had continued to affect the economy.

"There is heavy dependence on import taxes, accounting for nearly 49%, yet domestic production should be the biggest source of revenue."

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