Uganda is set to move away from its separate tax registration system after Cabinet approved the use of the National Identification Number (NIN) as the Tax Identification Number (TIN).
The decision was reached during a Cabinet meeting held at State House, Entebbe, on Monday and announced by the Minister of ICT and National Guidance, Justine Kasule Lumumba, on Tuesday.
Lumumba said linking tax identification to the NIN issued by the National Identification and Registration Authority (NIRA) will enable the Government to maintain a more reliable and unified record of taxpayers.
She said the current system, which requires taxpayers to obtain a separate TIN from the Uganda Revenue Authority (URA), has created gaps in taxpayer identification and data management.
“This will improve the accuracy of our taxpayer register, strengthen our ability to identify and trace taxpayers, and make our data systems work better together,” Lumumba said.
The Government expects the change to improve tax compliance, curb revenue leakages and make it easier for citizens to interact with tax authorities.
A TIN is currently issued by URA to individuals and businesses for tax administration and is required when undertaking transactions with tax implications.
Under the new arrangement, the NIN will serve as a common identifier, allowing government agencies to share and verify taxpayer information more efficiently.
Lumumba said the move is intended to simplify the tax registration process while strengthening the Government’s capacity to identify taxpayers, improve data management and enhance revenue collection.
