New Tax Collection Mechanisms

URA Introduces New Tax Collection Mechanisms to Boost Revenue

In an effort to enhance tax compliance and increase revenue collection, the Uganda Revenue Authority (URA) has introduced new mechanisms targeting taxpayers across the country. These initiatives align with the government’s goal of funding development projects while reducing reliance on external borrowing.

Key Highlights of the New Measures

1. Stricter Penalties for Non-Compliance

URA has revised penalties to deter tax evasion. Misleading tax declarations now attract fines of up to UGX 110 million, significantly higher than before. Non-compliance with EFRIS and tax stamps can lead to fines of UGX 30 million or imprisonment.

2. Enhanced Tax Education and Awareness

A nationwide tax education campaign is underway to promote voluntary compliance. URA is engaging business owners and individuals to ensure they understand their tax obligations.

3. Digital Transformation and Smart Tax Solutions

URA is leveraging digital tax stamps, EFRIS, and data analytics to improve tax monitoring and collection. These technologies enhance transparency and reduce tax evasion.

4. Voluntary Disclosure Program

Taxpayers who voluntarily declare undisclosed liabilities can benefit from reduced penalties, encouraging compliance without fear of severe punitive action.

Why These Measures Matter

With Uganda’s public debt increasing, the government aims to raise more domestic revenue. By strengthening enforcement and promoting compliance, URA hopes to reduce borrowing and finance key national projects like the Parish Development Model.

These changes mark a shift towards a digitized, transparent, and accountable tax system. Taxpayers are encouraged to embrace compliance to avoid hefty fines and support Uganda’s economic growth.