The nation of Uganda fell significantly below par their expected end reach to hit their goal of Shs 13 trillion in its 2016/17 financial year by a deficit of close to € 109 million, as revealed yesterday.
Uganda Revenue Authority (URA) Commissioner General Doris Akol made the statement on Monday, highlighting though a positive gesture in terms of the discouraging, fateful collection.
The less-than-satisfactory collection was, however, Shs1 trillion higher that of the financial year before.
Addressing URA’s first press conference this new financial year, Ms Akol attributed the revenue gap to a “sluggish economic performance”.
The International Monetary Fund in May, cut back the country’s growth in the ended financial year from the projected 5 per cent to 3.5 per cent, citing, among other things, volatility of food prices due to prolonged drought.
The commissioner general said limited credit to the private sector last financial year adversely affected manufacturing, whole sale and retail construction, diminishing domestic revenue generation from taxes.
Constrained aggregate demand in the economy affected companies’ profitability and corporation tax returns in the 2016/17 FY, she said, adding that their counterparts in East Africa, except Burundi, too failed to meet revenue targets.
In Uganda’s case, she said, traders decided to warehouse goods or re-export them to mainly Kenya and Rwanda, which further affected the customs revenue.
Official records show that re-exported goods nearly tripled during the financial year that ended on June 30.
Ms Akol outlined tackling fraud, enforcing compliance and improved human resource as priority areas to reduce revenue loss in the future.