The Uganda Revenue Authority (URA) recorded a 13 percent increase in Value Added Tax (VAT) for the fiscal year ending 30 June 2023.
This information is included in a report by the Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE), which noted that the rise was mainly attributed to domestic production of goods and services subject to VAT.
Sugar production achieved an excess of Shs7.79 billion, attributed to the timely implementation of the Electronic Fiscal Receipting and Invoice Solutions (EFRIS).
The committee chairperson, Hon. Medard Sseggona, delivered the report on Tuesday, 01 October 2024.
“The committee recommends enforcing EFRIS for all eligible taxpayers to boost revenue collection. URA should roll out EFRIS after thorough and widespread awareness efforts among taxpayers,” Sseggona said.
The report highlighted that the EFRIS rollout was overdue, noting that taxpayer registration for the system was supposed to conclude by June 2014 and implementation was to commence by July 2024.
“The accounting officer must expedite the system’s completion to ensure smooth EFRIS operations and improve tax administration efficiency,” the report stated.
According to the committee, insufficient taxpayer education among the public had led to apathy and resistance towards the new VAT collection method.
“URA management should prioritize taxpayer education to enhance compliance and improve revenue collection, which was the primary goal of introducing EFRIS,” Sseggona added.
Arua District Woman MP, Hon. Lillian Paparu, proposed involving local leaders in taxpayer education, attributing the misunderstandings between URA officials and local businesses to minimal involvement of local authorities.
“Local leaders should be included, and tax education improved so that there’s a better relationship between URA and the community,” she remarked.
In a related matter, the committee also presented a report on the Uganda Wildlife Authority (UWA) and criticized the agency for not adhering to accounting and spending procedures.
Sseggona stated that UWA overspent by Shs4.7 billion beyond its approved budget, calling it a case of mismanagement.
The report further revealed that UWA had unaccounted-for expenses totaling over Shs462 million.
“For expenditures amounting to Shs198 million, there were no supporting documents, while payment vouchers for Shs264 million were missing. Consequently, the Auditor General could not verify whether the funds in question, totaling Shs462 million, were utilized for their intended purposes,” Sseggona mentioned.
Members of Parliament suggested that entities with weak internal accounting controls be mandated to submit their non-tax revenue collections to the Consolidated Fund to prevent the risk of misappropriation.
“We’re witnessing revenue leakages at the source in various COSASE reports. In one instance, when Uganda Revenue Authority took over the collection process, non-tax revenue significantly increased,” said Hon. Fredrick Angura (NRM, Tororo South County).
