Tax body, Uganda Revenue Authority (URA), collected shs 15,466.68 billion in the first nine months of financial year 2021/2, according to the body’s performance report released on Tuesday.
In the same period, URA expected to collect UGX 16,532.43 billion, representing 73.93% of the annual target of UGX 22,363.51 billion, short of the target by 1,065.75 billion.
The collected amount represents 69.16% of the annual target.
Although, the body didn’t meet its target, there is a significant growth in revenue of Shs 1,490.41 billion (10.66%) was registered in July to March FY 2021/22 compared to the same period in the FY 2020/21.
In the same period, the domestic revenue collections were Shs 9,484.62 billion against a target of Shs 10,670.32 billion, registering a growth of Shs 816.22 billion (9.42%) as compared to the same period in FY 2020/21. However, the collections were below the target by Shs 1,185.70 billion.
The direct domestic tax collections were Shs 4,907.64 billion, posting a performance of 94.17%. The direct tax collections for the period grew by Shs 273.94 billion (5.91%), compared to the same period in the FY 2020/21.
According to the report, major surpluses were registered in PAYE (Shs 248.65 billion), casino tax (Shs 14.70 billion) and tax on bank interest (Shs 1.84 billion).
Shortfalls were mainly incurred in corporate tax (Shs 200.81 billion), withholding (Shs 142.35 billion), rental tax (Shs 120.29 billion), and treasury bills (Shs 45.14 billion) majorly due to COVID 19 restrictions that led to supply chain disruptions, low aggregate demand in the economy and thus reduced profitability.
PAYE contributed the most to direct domestic taxes collections registering a growth of 15.50%, followed by Corporation tax.
For thr case of indirect tax, collections for the period July to March were Shs 3,602.86 billion. A growth of Shs 341.90 billion (10.48%) was realised compared to the same period in the FY 2020/21.
At tax head level, VAT collections were Shs 2,394.10 billion registering a shortfall of Shs 504.72 billion and a performance of 82.59%. A growth of Shs 224.78 billion (10.36 percent) was realized.
The report further indicate that under performance was witnessed in the Construction sector by Shs 74.83 billion, Beer Shs 49.39 billion, spirits/waragi Shs 48.38, soft drinks Shs 43.72 billion and Real Estate activities Shs 43.13 billion but a major surplus in Phone talk time at Shs 43.63 billion was registered.
The Local Excise Duty (LED) collections were Shs 1,208.77 billion registering a shortfall of Shs 210.15 billion, a performance of 85.19% and a growth of UGX 117.12 billion (10.73%). However, shortfalls in beer by Shs 50.59 billion, spirits by Shs 52.11 billion and internet data by Shs 35.54 billion.
URA registered surpluses in levy on mobile money withdrawals by Shs 29.79 billion, mobile money transfers Shs 8.21 billion and sugar Shs 7.48 billion.
The Non-Tax Revenue collections were Shs 974.11 billion against a target of Shs 1,141.25 billion, posting a shortfall of Shs 167.13 billion and a performance of 85.36%.
International trade tax collections for the period July to March 2022 were Shs 6,255.93 billion against a target of Shs 6,191.44 billion, posting a surplus of Shs 64.49 billion, and a performance of 101.04%.
Customs tax collections grew by Shs 686.82 billion (12.33%) in July to March of FY 2021/22, in comparison to the same period last year. The performance was mainly attributed to growth in vatable goods by 13.78%(Shs 1,432.55 billion) in period July to March 2022 compared to the same period last year. And increase in fuel volumes by 1.05%(17.49 million litres) compared to July to March 2021.
This, according to URA, was due to the increase in petrol imports by 0.5%(3.89 million litres), jet fuel by 53.80%(31.73 million litres), and Kerosene by 33.20% (10.53 million litres).
During the period July to March FY 2021/22, the top 5 sectors were Wholesale and retail, Manufacturing, Financial activities, Information & communication and Public administration and defense. These generated 74.48% of the total revenue.
Wholesale and retail trade sector was the highest contributor with 29.25 % (Shs 4,604.72 billion), Manufacturing sector followed with 23.45% (Shs 3,690.68 billion). The third sector in terms of revenue contribution was Financial activities excluding insurance with 9.90%(Shs 1,557.68 billion), then Information and Communication sector in the fourth with 7.83% (Shs 1,233.11 billion) and Public administration and defense in the fifth with 4.05% (Shs 637.32 billion).
URA notes that although majority of the sectors recorded positive growth throughout the nine months, significant declines in revenue were registered in some sectors including electricity, gas, steam and air conditioning supply which declined by 25.77%, Construction declined by 10.32%, while a decline of 3.20% was registered under Real estate activities.
The body attributes thr decline to slow recovery of businesses from COVID19.