URA fails to hit target

By Samuel Ssebuliba

The Uganda Revenue Authority is likely not to hit its tax collection target of 13 trillion this financial year.

URA commissioner general has revealed that only Shs.10.9 trillion has been collected in in three quarters, leaving a Shs.2.1trillion shortfall to be covered in the remaining last quarter.

Speaking to media this morning, Doris Akol said this figure was hinged on the assumption of 3,400 foreign exchange rate which has not been realized and the 5.5% GDP growth rate which has remained a dream.

Akol says that realistically this target will not be achieved though they have achieved a year to year revenue growth of 13%.

She adds that despite achieving a 97.4% collection rate, the authority has been constrained by the prolonged drought that affected agro-output and slow credit growth that affected the services sector especially construction, real estate and manufacturing.

She also notes a 2% contraction of agriculture sector, reduced foreign direct investments  and exports due to global shocks as well low domestic credit growth .