The Uganda Revenue Authority (URA) has been tasked with collecting a record Shs36.71 trillion in the 2025\/26 financial year, a sharp increase from the Shs31.369 trillion set for the current financial year (2024\/25).<\/p>\n
The new target is part of the government\u2019s broader strategy to boost domestic revenue and reduce reliance on external borrowing.<\/p>\n
The announcement was made by Henry Musasizi, Minister of State for Finance, while appearing before Parliament\u2019s Finance Committee, where he led a team from URA to present the Authority\u2019s 2025\/26 Ministerial Policy Statement.<\/p>\n
Musasizi was responding to concerns raised by Members of Parliament regarding discrepancies in revenue figures presented by URA, which appeared lower than what was captured in the Appropriation Bill 2025.<\/p>\n
\u201cThe government is committed to increasing domestic revenue to finance our activities. The Shs36.71 trillion target is realistic, given the various tax policy and administrative measures being put in place,\u201d Musasizi explained.<\/p>\n
The government\u2019s focus is on widening the tax base, enhancing compliance, and leveraging digital technology to seal revenue leakages. URA is expected to strengthen its tax enforcement efforts, expand the scope of taxable activities, and tighten controls on informal sector taxation, digital economy transactions, and real estate revenues.<\/p>\n
Despite the ambitious target, economic analysts and lawmakers have raised concerns about URA\u2019s ability to meet the projections, citing taxpayer fatigue, a struggling business environment, and enforcement challenges.<\/p>\n
MPs cautioned that increased taxation could burden businesses and households that are still recovering from economic shocks, including high inflation and global economic uncertainties.<\/p>\n
However, URA Commissioner General John Musinguzi assured Parliament that the Authority is implementing reforms that will improve revenue collection efficiency.<\/p>\n
\u201cThe key focus will be on compliance, curbing smuggling, tax evasion, and leveraging technology to improve collection systems,\u201d Musinguzi noted.<\/p>\n
The new revenue target will require robust policy adjustments, public sensitization, and cooperation from businesses. The government is also looking at alternative revenue sources, including potential new taxes or adjustments to existing tax structures.<\/p>\n
With 2025\/26 marking a crucial financial year, all eyes are on URA to see whether it can meet the ambitious revenue goals set by the government.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Uganda Revenue Authority (URA) has been tasked with collecting a record Shs36.71 trillion in the 2025\/26 financial year, a sharp increase from the Shs31.369 trillion set for the current financial year (2024\/25). The new target is part of the government\u2019s broader strategy to boost domestic revenue and reduce reliance on external borrowing. The announcement […]<\/p>\n","protected":false},"author":4,"featured_media":6560,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[409],"tags":[],"class_list":{"0":"post-6559","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-national"},"yoast_head":"\n