Uganda Revenue Authority (URA): A Pillar of National Development

The Uganda Revenue Authority (URA) is the government agency responsible for assessing, collecting, and accounting for central government tax revenue. Established in 1991, URA’s primary mandate is to mobilize revenue to fund national development initiatives and reduce Uganda’s dependence on foreign aid. As a semi-autonomous body, URA operates under the Ministry of Finance, Planning and Economic Development, but enjoys a degree of independence in its day-to-day operations.

URA’s core functions encompass a broad range of activities including tax assessment, tax collection, enforcement of tax laws, and taxpayer education. The authority manages various taxes, including income tax, value-added tax (VAT), customs duties, excise duties, and stamp duty. URA strives to create a fair and transparent tax system, fostering a culture of voluntary tax compliance among Ugandan citizens and businesses.

Over the years, URA has implemented several strategies to enhance revenue collection and improve efficiency. These strategies include the adoption of modern technologies, such as the Electronic Fiscal Devices (EFDs) for VAT collection and the Single Customs Territory (SCT) to facilitate trade within the East African Community. URA also emphasizes capacity building for its staff through training programs and professional development opportunities. This ensures the workforce is equipped with the necessary skills to effectively administer the tax system.

Furthermore, URA actively engages with taxpayers through various outreach programs, workshops, and seminars. These initiatives aim to educate taxpayers about their rights and obligations, promoting voluntary compliance and reducing tax evasion. The authority also operates a call center and online platforms to provide taxpayers with convenient access to information and support.

While URA has made significant strides in revenue mobilization, it faces several challenges. These include tax evasion, smuggling, corruption, and a large informal sector that is difficult to tax. To address these challenges, URA is continuously strengthening its enforcement capabilities, enhancing its risk management framework, and collaborating with other government agencies and international organizations.

URA’s contribution to Uganda’s economic development is undeniable. The revenue collected by URA funds essential public services such as education, healthcare, infrastructure development, and national security. By effectively mobilizing domestic resources, URA plays a crucial role in supporting Uganda’s journey towards self-reliance and sustainable economic growth. Looking ahead, URA is committed to leveraging technology, fostering taxpayer engagement, and strengthening its institutional capacity to meet the evolving demands of Uganda’s economy and contribute to the country’s long-term prosperity.