Uganda Targets 20% Tax-to-GDP Ratio by FY 2029/30 Amidst Revenue Enhancement Drive
The Ministry of Finance, Planning and Economic Development (MOFPED) and the Uganda Revenue Authority (URA) have formally aligned on an ambitious target to elevate Uganda’s tax-to-GDP ratio to 20% by the Financial Year 2029/30. This strategic objective was solidified during a high-level meeting between Finance Minister Henry Musasizi and the URA’s leadership, including Chairman of the Board Emmanuel Katongole and Commissioner General John Musinguzi.
The discussions centred on critical revenue enhancement measures for the fiscal period spanning FY 2026/27 through FY 2029/30. Minister Musasizi underscored the government’s commitment to this fiscal aspiration, noting that the current tax-to-GDP ratio stands at a modest 14.2%. He expressed readiness to collaborate closely with the URA to ensure the successful attainment of the 20% target.
A key tenet of the Minister’s directive to the URA is the imperative to implement strategies that ensure all Ugandans with taxable income contribute their fair share. This approach aims to alleviate the disproportionate tax burden currently borne by a limited segment of the compliant taxpayer base.
In his remarks, the URA Board Chairman, Emmanuel Katongole, outlined several critical recommendations to bolster revenue collection and streamline trade facilitation. He called for enhanced data integration across Ministries, Departments, and Agencies (MDAs) and the URA to ensure robust revenue assurance. Furthermore, Katongole advocated for the establishment of a centralised internal container depot (ICD) at Namanve, positing that such a facility would significantly improve trade efficiency, reduce costs and delays, and mitigate revenue risks. The URA also highlighted the necessity of reviewing existing double taxation agreements, which are perceived to constrain Uganda’s sovereign taxing rights. These proposed measures are expected to have significant implications for corporate tax planning, compliance strategies, and investor due diligence within Uganda.
