Revenue Authority -URA has missed its target for the first quarter of
financial year 2021/22 by 499.49 billion shillings.
of the 4.959 trillion shillings’ target government gave, the tax body managed
to collect 4.459 trillion shillings. However, this is a revenue collection growth
of 389.7 billion shillings from the 2020/21 collections of the same period.
set U.R.A to collect 22.363.52 trillion shilling in revenue in the financial year
2021/22 which is 3.100.51 over and above last year’s collections.
Musinguzi the U.R.A commissioner general said that Government’s continued
restrictions on some sectors has partly affected the supply chain hence disrupting
the market like restaurants, hotels, events institutions and many
number of sectors declined in revenue collection compared to the last financial
year. Construction declined by 15.95% and real estate by 4.67%, wheras the revenue from electricity, gas, steam and air conditioning supply sector
also declined by 17.31%.”
commissioner general added that the restrictions have also influenced domestic
tax performance with numerous deficits i.e. V.A.T 223.64 billion shillings, local
excise duty at 77.27 billion shillings, cooperate tax at 24.74 billion
shillings and rental income tax at 19.49 billion shillings.
international trade tax collection, was also characterized by deficits, such as petroleum
duty 43.34 billion shillings, import duty 68.27 billion shillings and
withholding tax 135.80 billion shillings.
the international tax performance, the country also registered a decline in
imported fuel volumes by 30.39 million liters in comparison to the same period
last financial year.
a breakdown, petrol declined by 24.49 million liters, diesel by 5.24 million liters and kerosene 0.73 million liters.
to the above, tax yields from imports also declined by 8.655 billion shillings
compared to the same period last financial year.
to U.R.A, the major yielding items also registered declines i.e. motor vehicles by 345.36
billion shillings, palm oil by 224.94 billion shillings, wheat/meslin by 148.
45 billion shillings, petroleum oils by 113.46 billion shillings and electrical
apparatus by 116.07 billion shillings among others.
the tax body managed to register 65,666 new tax payers in this same period,
which expanded the tax base to 1,849,159 payers.
the same period, the U.R.A customs enforcement managed to recover 22.38 billion
shillings from the 2,161 seizures; the investigations also recovered 24.28
billion shilling from the 38 cases.
the missed target, the commissioner general is optimistic that the authority will
collect the remaining 17,404,25 trillion by end of the financial year, starting
with the 6,104.64 trillion for the second quarter.
achieve the target, U.R.A highlighted its strategies including among others; Alternative
dispute resolution to amicably resolve tax disputes with the tax payers; strengthening implementation of digital tax stamp and electronic fiscal devices, which will increase
effectiveness and efficiency; ensuring effective and efficient implementation of Domestic Resource Mobilization