After registering shortfalls for the last nine months, Uganda Revenue Authority's collections have picked up with a surplus of Shs21.86 billion, the tax body announced yesterday.

URA registered a net revenue collection of Shs327.06 billion in July against a target of Shs305.20 billion, a move that seemed to have reignited some ray of hope and self belief that all is not over yet.

Around the same time last year, the net revenue collection registered a growth rate of 29.48 per cent compared to the last month growth rate of 107.16 per cent.

"We are glad with the way things have started in July after months of shortfalls," the tax body's assistant commissioner in charge of public and corporate affairs, Ms Sarah Birungi Banage, told journalists at the agency's headquarters at Nakawa yesterday.

If this trend is sustained throughout the coming months, it means the government target of Shs 4.4 trillion to finance its programmes for the next financial year will be a done deal. Last month's performance is attributed to surplus of Shs19.82billion recorded under the domestic taxes and Shs6.86 billion accrued on the international trade.

The direct domestic taxes performed at 127.82 per cent, posting a surplus of Shs17.93 billion compared to the same month, July last year where the growth rate was 49.25 per cent while the indirect domestic taxes preformed at 100.86 per cent and registered a surplus of Shs450 billion compared to July last year where it registered a growth 23.59 per cent. The performance of the indirect taxes is explained by the surplus of Shs0.72billion registered under the exercise duty.

The sectors that performed well for local excise duty include the telecommunication companies, soft drinks and beer at the rate of 106.01per cent, 121.80 per cent and 106.59 per cent respectively.

According to the tax collectors, the increased investment in the aforementioned sectors explains the impressive performance. However, some players say the mandatory nature of the excise duty gives them no option but to oblige.