Uganda Revenue Authority shakes off Revenue Deficits incured in 2011
Uganda Revenue Authority has shaken off revenue deficits it posted in the months of Dec-11 and Jan-12 with a UGX 1bn surplus, marginally reducing the cumulative tax deficit from UGX 73bn to UGX 71bn.
Although February’s UGX 1bn surplus has boosted the tax collectors’ spirit, tax analysts think the remaining time—about three months to the close of the financial year, is not enough to turn around the collective deficit of UGX 71bn.
Should Uganda Revenue Authority (URA) fail to hit its revenue collection target of UGX 6trn, Government will be forced to borrow so as to cover the shortfall or re-adjust its budget to take care of the deficit. Net revenue out turn for the month of Feb-12 was UGX 474bn against a target of UGX 473bn, posting a surplus of UGX 1.36bn.
The good performance is tagged to enforcement of overdue tax liabilities from electricity sector. A total of UGX 11bn was recovered as part of the UGX 119bn VAT arrears owed by the sector. Other recoveries from arrears for the month totalled to UGX 21bn.