The reality over weaker economy in which lower growth slows down virtually every major sector was now being captured by the Uganda Revenue Authority whose shortfall in collection for the ended Financial Year 2016/2017 hit nearly half a trillion shillings. “One of those figures that I would like to point out is Petroleum revenue. We had a significant drop in the amount of growth of volume in Petroleum to the 388.1 billion, a lot of it is accounted for by the significant drop in growth of Petroleum import revenue.” Said, Doris Akol – Commissioner General URA. Un Perpetual challenges ofSmall and Medium Enterprises apart, the larger tax payers absorb the pressures within the economy that interfere with their compliance on cooperation tax among others.

“Petrol Services, Information and Communication which is basically Telecom, Manufacturing Sector then Whole sale, Retail and then the Construction Sector. So if you have three of the five underperforming, you will have a lower than expected profitability and this affects the cooperation tax. So, of the 457.51 billion, 388 is coming from Customs, a 197.15 is coming from domestic taxes and specifically relating to cooperation tax.” Said the Commissioner General, URA.

By way of outlook, the Uganda Revenue Authority remained concerned that the tax measures unveiled in the current Financial Year 2017/2018 were instead revenue reducing, projecting further challenges on its new 15 trillion Target. “But now we have hard revenue reducing measures. So when you have a target on the back of the revenue reducing policy measures, that’s why I said it’s a stretch target because it will stretch us to look for revenue in other areas where we would not otherwise expect revenue to come from as a result of the policy.” Said the Commissioner General, URA. Among others. VAT waiver on selected items, Cooperation tax waiver for some entities, Income tax for SACCOs were exempted in the current Financial Year worth billions of shillings combined.