The Uganda Revenue Authority (URA) has reported an impressive revenue performance for the first half of the 2024/25 financial year, surpassing its target by Shs322 billion. Between July and December 2024, URA collected Shs15.2 trillion against a target of Shs14.9 trillion, achieving a 102 percent performance rate. This marks a significant growth of Shs2.1 trillion, or 16 percent, compared to the same period in the previous financial year.
Commissioner General John Musinguzi Rujoki attributed this milestone to Uganda’s stable and resilient economy, enhanced administrative strategies, and the cooperation of patriotic taxpayers. He highlighted that URA had been tasked with collecting Shs31.3 trillion in net revenue for the financial year, with 48 percent of this—Shs14.9 trillion—allocated to the first half. The remaining 52 percent, equivalent to Shs16.4 trillion, is set for collection in the second half of the year.
The strong performance was primarily driven by domestic tax revenues, which continue to grow steadily, reflecting a reduced dependency on international trade taxes. Domestic revenues for the first half reached Shs10.1 trillion, exceeding the target of Shs9.8 trillion by Shs257 billion. This represents a remarkable growth of Shs1.3 trillion compared to the same period last year. While domestic taxes excelled, international trade taxes fell short of their target by Shs28.2 billion, achieving a performance rate of 99.4 percent. Despite this, the segment still recorded a significant revenue growth of Shs780 billion from the previous financial year.
URA’s success has been driven by a combination of strategic measures. Improved tax compliance, arrears collection, and taxpayer education played a key role, complemented by the increased use of technology such as the Electronic Fiscal Receipting and Invoicing System (EFRIS). These digital platforms have enhanced enforcement and streamlined tax reporting processes. Field operations, including compliance engagements, investigations, and intensified enforcement activities, further boosted collections. Additionally, the use of alternative dispute resolution allowed for the collection of Shs261 billion in principal tax, Shs2.73 billion in waived penalties, and Shs111 billion in interest by the close of December 2024.
The taxpayer register also saw considerable growth during the period, with 420,183 new taxpayers added, bringing the total to 4,881,983. These new taxpayers contributed Shs59 billion in revenue. The expansion was attributed to simplified processes for acquiring Tax Identification Numbers (TINs), the use of third-party information, and intensified field operations. Experts like Godfrey Akena, Executive Director of the East African School of Taxation, noted that the income tax waiver under Section 47A of the Tax Procedures Code Act played a critical role in encouraging taxpayers to clear outstanding dues. Julius Mukunda of the Civil Society Budget Advocacy Group also credited EFRIS and other e-tax platforms for bolstering compliance.
Countrywide enforcement operations recovered Shs38 billion from 9,303 seizures, with December 2024 alone recording Shs86 billion from legal services and arbitration, which accounted for Shs55.25 billion. With Shs16.4 trillion still to be collected in the second half of the financial year, URA remains committed to sustaining the momentum. The strong results so far underscore the effectiveness of its strategies and the critical role of taxpayer compliance in supporting Uganda’s development agenda.
