How URA plans to collect 22.4 trillion in financial year 2021/2022
The Uganda Revenue Authority (URA) has been given an interim revenue target of Shs22.42 trillion in the Financial Year 2021/22 by parliament.
At the recent launch of National Budget month 2021/22, URA Commissioner General John Rujoki Musinguzi revealed the Tax Policy Measures that have been considered and approved by parliament for FY 2021/22 to help URA achieve the target.
Government will reduce depreciation rates allowable for some selected assets from 35% to 20%. This is expected to raise Shs30bn.
URA will also discontinue concurrent deduction of initial allowances and depreciation in the first year of use of the qualifying asset. This is expected to result into Shs20bn revenue.
URA will also harmonize the tax regime for rental income derived by individuals and non-individuals with that of individuals i.e. Tax rate of 30% and providing for a cap of 75% expenses (This is expected to raise Shs13.53bn).
This will involve broadening the scope of taxation of plastics to cover all plastics (This is expected to raise Ss41bn)
Government through URA will also reduce the excise duty on opaque beer from 30% or Shs650 per litre whichever is higher to 20% or UGX 230 per litre whichever is higher (Shs5.0Bn).
URA is set to introduce excise duty on fermented Beverages and this is expected to raise Shs10bn.
Government will also introduce excise duty on alcoholic beverages and this is expected to raise Shs2.5bn). This will help create healthy competition amongst the sector players and also raise revenue for funding Government activities,
URA will also introduce a harmonized excise duty rate of 12.0% on airtime, value added services and internet data and this is expected to raise Shs60bn. key sectors on Health, education and research are exempted from this tax.
Government will also impose excise duty of Shs100 per litre of fuel and this is expected to raise Shs90bn.
Under VAT, URA will remove the exemption on the supply of all production inputs into limestone mining and processing into clinker in Uganda and the supply of clinker for further value addition in Uganda. This is expected to raise Shs10bn.
Come July 1st 2021, URA will introduce an export levy of 8% on the total value of fish maw exported and this is expected to raise Shs10bn.
Government has also imposed a levy on leaf tobacco at the rate of US Dollars 0.8 per Kg of leaf tobacco exported out of Uganda and this is expected to raise Shs20bn).
Government has also imposed export levy of 5% on processed gold and 10% of the value of unprocessed minerals and this is expected to raise Shs46bn.
To sum it all up the, URA has redefined her Mission, Vision and Core values, while placing special attention to the integrity of our staff, processes and systems.