URA Turns to Digital Systems to Widen Uganda’s Tax Base

Nicholas Agaba·News·

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URA Turns to Digital Systems to Widen Uganda’s Tax Base

The Uganda Revenue Authority (URA) plans to deepen the use of digital systems and data sharing as it seeks to widen the tax base and raise more domestic revenue.

URA officials outlined the strategy during a meeting with State Minister for General Duties Cissy Mulondo. The URA team, led by Commissioner for Executive Office Operations Abel Kagumire, briefed Mulondo on measures aimed at improving tax administration and closing revenue leakages.

The tax body plans to rely more on digital technology, enforcement, data-driven compliance and engagement with taxpayers.

Kagumire said Uganda needs to raise more domestic revenue to finance its development priorities and reduce reliance on external financing. According to URA, digital systems could make it easier for taxpayers to register, file returns, make payments and meet other tax obligations.

Among the systems is the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), which records business transactions electronically. URA said the system can improve transparency in business transactions and provide information needed to enforce tax compliance.

The authority also wants government agencies to share more information to identify businesses and individuals that are outside the tax system or fail to meet their obligations. The Uganda Registration Services Bureau (URSB) and local governments are among the institutions expected to support the initiative.

URA believes stronger data sharing will help it identify businesses that operate without meeting their tax obligations. The strategy is also expected to expand the number of taxpayers and reduce pressure on individuals and businesses that already comply with tax laws.

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