The Minister of Finance, Matia Kasaija is tired of borrowing and as such, he has tasked the Uganda Revenue Authority (URA) to raise the country’s tax to GDP ratio to at least 20% in three years.
Uganda’s current tax to GDP ratio stands at 14%, thanks to 16.5% increase in revenue collection in the last financial year.
Speaking as chief guest at the launch of URA’s Digitization and IT Strategy today at the tax body’s headquarters in Kampala, Kasaija said there is no way a mature country such as Uganda should have to go through the humiliation of borrowing.
“We must raise the tax to GDP ratio to 20%. I am charging you (URA Commissioner General) and your staff to raise the tax to GDP ratio to 20% within another two-three years. Even if I go away, I will leave this instruction to my predecessor. I am tired of borrowing. Please save me from the humiliation,” Kasaija said.
He said the borrowing comes with strict terms attached to it.
He also asked URA to support the country in job creation during the course of their work.
“In your work, you must support me to create more valuable jobs for our youth…Make sure that we support industries, we make schools, build infrastructure, hospitals etc,” he added.
He assured URA of support in ensuring efficient and effective revenue mobilization.
URA’s 3-year digital strategy is aimed at instant, inclusive and interoperable tax administration.
John Rujoki Musinguzi, the URA Commissioner General, said the Authority embarked on its digital journey in 2009.
“2023 marks a milestone and a launch into a new phase of digital transformation and this is the phase of simplifying taxation and a phase of big data analytics,” Musinguzi said.
These solutions, he added, are aimed at making “easy for the taxpayer but they will also make it easy for the government of Uganda to efficiently collect revenue and for the URA as a department responsible for that.”
He said over the years, the authority has acquired new technology. “There has been a progressive journey of ICT innovations and investment,” he said.
On the tax to GDP ratio, Musinguzi said: “We exist not just to hit the target; however, I do assure you that we shall continue hitting it never looking back, but beyond the target we also know that its our role to grow our country’s tax to GDP ratio.”
UNDP Deputy Resident Representative in Uganda, Sheila Ngatia said that studies have shown that African countries can mobilize enough revenue and therefore, URA’s digital strategy is timely in not only mobilizing revenue domestically but in ensuring efficiency in the entire tax system.
Robert Mutebi, URA’s Commissioner in charge of Information Technology said that the digital strategy takes care of all the customer’s value proposition (reliable and accurate data, accurate ledger and is customer centric among others).
