The Commissioner General at Uganda Revenue Authority(URA),John Musinguzi, has underscored the role of financial institutions in revenue mobilisation strategy.
This is geared towards improving revenue collection and increasing the tax-to- GDP ratio to 18% by the financial year 2023/2024.
Speaking during the 6th URA Annual Banks Conference held at Mestil Hotel on Friday, Musinguzi said the economies world over have gone through major social and economic disruptions.
“Currently, we are funding 47% of the national budget leaving us to borrow the remaining 53%. Our tax-to-GDP ratio is 13%, which is the lowest and below the average sub-Saharan African performance of 16%. Research has shown that for Uganda to fully fund its national expenditure, we need to at least double our tax-to-GDP ratio to 26%,” he said.
Musinguzi told The UGNEWS24 that there is a need for a collective effort and commitment in improving service delivery, supporting business developments, industrialisation, economic growth as well paying a fair share of tax revenue to support the government programmes, reduce on the level of economic dependence and improve the overall social welfare in our country.
“Whereas our mission as URA is to mobilise enough revenue for national development, this is a journey we cannot travel alone. We have proposed to continuously engage all key economic players so that we have a critical mass that can transform our nation,” he said.
Moses Kaggwa, the acting director Economic Affairs Ministry of Finance, Planning and Economic Development, said the banking sector is central to sustained economic growth, not only because it contributes significantly to tax revenues, but is also critical in linking savings and investment.
“Proper alignment of the resource allocation process stimulates economic growth and consequently contributes to improved domestic revenue mobilization efforts. The total amount of tax revenues from the banking sector are now over Shs 958 billion, this number has grown significantly over the last five years, from Shs. 535.9 billion in the financial year 2016/17,” he said.
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