Economy
URA Posts Revenue Surplus as Uganda’s Economy Shows Strong Growth
The Uganda Revenue Authority (URA) has announced a remarkable revenue collection performance for the Financial Year 2024/25, surpassing its set target and registering a surplus of Shs 262.43 billion. The development is being hailed as a strong indicator of the country’s recovering economy and improved tax compliance among Ugandans.
Addressing the media at the URA headquarters, Commissioner General John Musinguzi Rujoki revealed that the Authority collected a total net revenue of Shs 31.63 trillion, against the Ministry of Finance’s target of Shs 31.36 trillion. This represents a performance rate of 100.84 per cent. The surplus follows an overall revenue growth of Shs 4.33 trillion, or 15.86 per cent, compared to the previous financial year.
According to Musinguzi, this performance was largely supported by a stable and resilient economic environment, improved tax administration, and a growing sense of patriotism among taxpayers. He noted that both domestic and international revenue streams registered notable surpluses and year-on-year growth. The domestic revenue collections amounted to Shs 21.25 trillion against a target of Shs 21.11 trillion, resulting in a surplus of Shs 131.78 billion and a 15.59 per cent growth from the previous financial year. Meanwhile, gross international tax collections stood at Shs 11.104 trillion, exceeding the target of Shs 11.054 trillion with a surplus of Shs 49.32 billion and a 16.23 per cent increase.
Musinguzi highlighted that Uganda’s economy had grown by 6.7 per cent at the halfway mark of the year and is expected to continue expanding. Recent trends have shown increased activity in the services and industrial sectors, positioning the country among the fastest-growing economies in Africa. This economic momentum, he said, laid a strong foundation for URA’s achievements in revenue mobilization.
Looking ahead, the Ministry of Finance has set a net revenue collection target of Shs 36.74 trillion for the Financial Year 2025/26. This represents an ambitious increase of Shs 5.37 trillion, or 17.12 per cent, compared to the current financial year. Despite the scale of the target, Musinguzi expressed confidence in its achievability, citing the projected 7 per cent economic growth and URA’s robust strategy to sustain revenue expansion.
In response to concerns about the feasibility of meeting such a high target given public reluctance toward taxation, the Commissioner General outlined a series of measures that URA will deploy. These include strengthening tax administration and compliance, expanding the workforce, engaging with stakeholders, and conducting widespread public sensitization. Other strategies include enhanced staff accountability through a performance management system, the continued rollout of digital tax tools such as digital stamps and the Electronic Fiscal Receipting and Invoicing System (EFRIS), and the application of advanced data analytics, artificial intelligence, and risk management frameworks to detect revenue leakages and identify non-compliant taxpayers.
He also noted that URA would improve staff capacity, strengthen border management and scientific investigations, and rely more on alternative dispute resolution to handle complex tax matters efficiently.
Musinguzi attributed the success of the 2024/25 financial year to a collective national effort, emphasizing that taxpayers’ cooperation and economic resilience played a key role in achieving these milestones.
“This performance was driven by a stable and resilient economy during the year, improved administrative measures, and strong cooperation from our patriotic taxpayers,” he said.
The announcement signals growing confidence in Uganda’s economic direction and sets the stage for a potentially transformative year in public revenue mobilization.
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