Uganda: URA Blames 2026 Election Disruptions for Revenue Shortfall

20 January 2026

The Uganda Revenue Authority (URA) has attributed its shortfall in revenue collection for the second half of 2025 to disruptions caused by the 2026 election period.

Between July and December 2025, the authority collected Shs16.476 trillion, falling short of its projected target of Shs17.5 trillion, representing 94.09% of the planned revenue.

Denis Kugonza Kateeba, Commissioner for Domestic Taxes at URA, disclosed the figures while presenting the agency's 2026/27 National Budget Framework Paper before Parliament's Finance Committee.

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He explained that election-related interruptions temporarily slowed down URA's operations to accommodate political mobilization.

"The total revenue collection was Shs16.476 trillion against a target of Shs 17.5 trillion," Kugonza said.

"This was mainly due to the second-quarter interruptions of the elections, where URA slowed down some activities to allow political parties to mobilize their citizens and support the economy."

Kugonza further noted that some taxpayers reduced or paused operations during the election season, contributing to the shortfall.

"Some taxpayers slowed down on their activities, and we are confident that in the coming cycle of January to June 2026, we will recover rapidly and close the deficit," he said.

Despite these challenges, URA reported progress in recovering outstanding tax arrears, collecting Shs186 billion through arrears management and alternative dispute resolution, alongside Shs274 billion from completed cases.

These efforts helped mitigate the impact of the electoral disruptions on overall revenue performance.

Customs enforcement operations were also affected. Between July and December 2025, URA recovered Shs41 billion, falling short of the Shs61 billion target.

Kugonza said the slowdown in enforcement measures was similarly linked to the election period.

"Just as with domestic tax collections, the ongoing electoral activities resulted in a slowdown of enforcement operations," he explained.

"This allowed URA to adjust its measures as citizens were being mobilized for taxation."

URA remains optimistic that the shortfall will be addressed in the coming months.

"We are confident that in the next cycle, from January to June 2026, we will be able to recover the revenue deficit and meet the expected targets," Kugonza said.

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