The Uganda Revenue Authority (URA) has attributed a shortfall in revenue collections during the second half of 2025 to disruptions caused by the ongoing 2026 general election cycle, revealing that it collected shs16.476 trillion between July and December 2025 against a projected target of shs17.5 trillion.
The disclosure was made by Denis Kugonza Kateeba, Commissioner for Domestic Taxes at URA, while presenting the Authority’s 2026/27 National Budget Framework Paper before Parliament’s Finance Committee.
“The total revenue collection was shs16.476 trillion against a target of shs17.5 trillion, registering a performance of 94.09 per cent,” Kugonza said.
“This was largely due to second-quarter disruptions arising from election activities, during which URA scaled down some enforcement and engagement activities to allow political mobilisation and normal economic activity.”
He added that election-related uncertainty also affected taxpayer behaviour.
“Some taxpayers slowed down their operations. However, we are confident that in the current cycle—from January to June—we shall recover rapidly and offset the deficit,” Kugonza said.
URA further reported that it strengthened recoveries from tax arrears through legal enforcement and alternative dispute resolution mechanisms, collecting shs186 billion from arrears management and shs274 billion from concluded tax cases.
Under Customs enforcement operations, the Authority collected shs41 billion against a target of shs61 billion, with performance similarly affected by the election period.
Kugonza also informed the committee that URA is investing in institutional capacity to support long-term revenue growth, including the operationalisation of a Tax Academy.
“We are implementing competence-based programmes and change management initiatives. As the Chair highlighted, we have increased staff numbers through recruitment, and these officers require capacity building,” he said.
“It is more cost-effective to train them through our Tax Academy, where we have tailored competencies aligned to tax administration programmes.”
He further noted that URA is preparing to manage new revenue streams from the petroleum sector, with oil production expected to commence in the next financial year.
“We are preparing petroleum oil and gas solutions. We expect oil to start flowing towards the end of the calendar year, and we must ensure that systems are in place to manage oil revenues effectively when production begins,” Kugonza said.
He assured Parliament that URA will continue implementing measures to boost tax compliance and revenue growth, including faster dispute resolution mechanisms and enhanced staff capacity building.
The Authority’s interventions, Kugonza said, are aimed at ensuring Uganda remains on track to meet its revenue targets while strengthening readiness to manage emerging revenues from oil and gas production.
