Published on 17/12/2024
Uganda Revenue Authority (URA) has warned that it will only be a question of time before anyone who attempts to dodge or manipulate their tax obligation is found out.
URA says that by using data and technology, it is now able to identify taxpayers who are dodging their tax responsibilities and those that are manipulating the tax systems.
Speaking on the sidelines of the 2024 Taxpayers’ Appreciation Season in Kampala on Wednesday, Mr John Musinguzi Rujoki, URA commissioner general, said by using data and technology they are now able to close tax leakages, a trend that is expected to continue into 2025.
“We will completely close all revenue leakages. Please don’t [taxpayers] be part of the racket that has been trying to cut corners and dodge their tax responsibility. As we automate our data and analyze it, it is bringing out several facts. Therefore, you will be doing some- thing that will be found out. It is a question of time,” he said.
Mr Rujoki also noted that URA’s focus will continue to prioritise digitisation and automation of [internal] and tax systems, because “it serves taxpayers better, and helps us assess the right tax”, urging taxpayers to embrace the technologies.
“It’s a question of time. We may delay them, but we must get on them because the rest of the world is using these technologies for their development. Let’s not be very rigid and conservative. Let’s be open to adjustment for the good of our nation,” he said.
Government has in the last five years deployed several digital initiatives to close tax leakages. For instance, in 2019, government implemented the Digital Tax Stamps as one of the measures through which it would tackle tax evasion while improving transparency and leveling competition in the marketplace.
Government has since introduced several other tax solutions, including the electronic fiscal receipting system and digitised rental income payments, among others.
Speaking at the same event, Finance Minister Matia Kasaija, said that whereas taxpayers have been sweating to pay taxes, there are people within government who continue to steal such money, thus depriving Ugandans of the much-needed services.
“When you pay the tax, then it comes… some people do not handle it very well, but we are there. We shall straighten them. You can’t steal money… that has made peo- ple spend sleepless nights. That money has come through because somebody has sweated to generate it. Even when you are a small business, we need revenue. We de- pend on you. All we need to do on our part is to make sure that the money is applied to things that will help this country to develop. Some people are stealing our money, I can assure you that they will not defeat us,” he said.
Mr Kasaija also pledged government’s commitment to “facilitate you [taxpayers] to go and do more business and bring more money in the Treasury” noting that: “If you want more assistance ask for it, we shall give it to you so that you can bring more taxes”.
The Taxpayers’ Appreciation Season, which was conducted under the theme: Honouring pillars for national growth,” sought to celebrate the pivotal role taxpayers play in Uganda’s progress.
Ministry of Finance Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi said government, as it seeks to achieve ten-fold growth from $50b to $500b in the next 15 years, was putting in place measures that will ensure that every Ugandan who falls within the taxable fold pays their fair share.
“We are trying our best to reduce the bur- den by broadening the tax base such that every single Ugandan can pay a little bit of tax, such that at the end of the day we can collect enough revenue,” he said.
URA says that it will continue to deploy technology in the fight against tax evasion, under declaration and non-compliance.
