Kampala. Solid performance in economic sectors such as wholesale and retail trade, Information and Communication Technology and increased manufacturing activities has contributed towards the Shs47b surplus the tax body has registered. Uganda Revenue Authority (URA) data also indicates that financial and insurance activities, and construction were also among sectors that generated much of the revenue collected between July and December of financial year 2015/16.
Releasing the half year revenue performance report on Wednesday, URA Commissioner General Doris Akol said of the 21 sectors, the top three performing ones (wholesale and retail, manufacturing and ICT) contributed more than 65 per cent of the total net collections. She, however, said apart from the manufacturing and construction sector, there has been a general decrease in the revenue share of the top five sectors in the last six months compared to the same period last financial year.


The top five sectors according to URA include; wholesale and retail trade (including repair of motor vehicles and motorcycles), manufacturing, Information and Communication Technology, financial and insurance activities and construction. Speaking about the half year revenue collection, Ms Akol said revenue performance of Shs5.5 trillion registered in the half year shows that URA’s net revenue collections performed above target, posting a revenue growth of 20 per cent.
And for that she is optimistic that in the next six months when the financial year closes, all will end well despite anxiety relating to the general election next month. URA is expected to collect Shs11.6 trillion this financial year.
he said: “URA is therefore confident that it will achieve the FY 2015/16 target and even surpass it.” Factors for improved performance Te factors that positively influenced the July to December revenue performance, according to URA, include; efficient administrative measures which have simplified the processes and improved the turnaround time.
hs has resulted in increased volumes of imported goods.


The major items that registered growth in VAT on importation include: telephone equipment, good transport vehicles, warm clothing and cement, rice, rolled iron, lubricants and cement.
Customs compliance interventions like anti-smuggling, stronger controls in warehousing, monitoring at the borders and increased intelligence, as well as improved relations with the taxpayers through continuous interactions have resulted in improved compliance.
Additionally, improved profitability in the financial sector, Tax Register Expansion Programme initiative has continued to bring on board more taxpayers from the informal sector into tax register despite the funding constraints. Enforcement interventions through audit are the other good news that boosted the half year revenue performance.

Disabling factors
However, the authority revealed that increased capital investments have affected taxes collected on electricity, water and manufacturing sectors.
 The non-renewal of licences in the oil and gas sector has also impacted negatively on the Pay As You Earn and Value Added Tax remittances received in the half year period.
Giving his insight, the executive director of Uganda Manufacturers Association, Mr Ssebagala Kigozi, said improved performance in manufacturing is real. He said: “We have tried to do import substitution and these are the rewards—more taxes. We (manufacturers) are also more compliant. We don’t want to be coerced into paying taxes. We are also expanding beyond Uganda and this explains our performance as a top sector.”
e continued: “We, however, would want to see taxes lowered so that everybody pays and you (URA) benefits from economy of scale. And importantly we need to see tax value visibility. There should be return for our taxes in terms of good infrastructure.”

The five top Performing sectors
Sector July-Dec July – Dec July – Dec

FY 13/14 FY 14/15 FY 15/16

Wholesale and retail trade;
Repair of
motor vehicles and motorcycles 969.82 1,153.01 1,343.95

Manufacturing 888.67 1,057.13 1,323.44

Information and communication 349.6 428.9 482.68

Financial and insurance activities 302.09 416.47 401.7

Construction 89.67 78.15 243.18

Source: Daily Monitor

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