Government urges stronger tax compliance as Uganda pushes for self-financed development

Uganda is making a determined push towards economic self-reliance, aiming to significantly reduce its dependence on external financing by strengthening domestic revenue generation. This was the central message delivered by Finance Minister Matia Kasaija during the recent Taxpayer Appreciation Day, where he lauded citizens and businesses for their pivotal role in the nation’s development.

Speaking at the ceremony, Minister Kasaija underscored the government’s commitment to “finance our own priorities” and reduce reliance on foreign aid. “We want to reduce dependence on external financing and strengthen our domestic revenue capacity,” he stated. “Uganda cannot grow when citizens work in isolation. Progress comes from unity, discipline and a shared belief in a better future for our children.”

The Minister highlighted the transformative journey of Uganda’s tax system, praising the Uganda Revenue Authority (URA) for its modernization efforts. “In the past, taxpayers would line up for hours. Today, a business owner in Lira or Kasese can file returns from a mobile phone. This is the Uganda we want, a country that keeps pace with global change,” Kasaija noted, extending appreciation to the URA Board and Commissioner General for their bold steps.

He also credited the long-standing peace, stability, and economic reforms under President Yoweri Kaguta Museveni and the NRM Government for fostering an environment where businesses, families, and the private sector could thrive. “Your compliance allows government to plan and invest in the economy. I thank you for paying your fair share of tax and urge you to continue to be tax compliant for the good and growth of our country,” he appealed.

John R. Musinguzi, the Commissioner General of the URA, echoed the minister’s sentiments, emphasizing that a strong revenue system is rooted in ethical conduct. He revealed that URA’s new corporate plan outlines Uganda’s economic sovereignty, which will not be achieved through external financing.

“We have sustained double-digit growth over the last three years and we are focused on achieving our financial target. This can only be done through consistent domestic revenue growth,” Musinguzi stated. He noted the widespread participation in the taxpayer appreciation season, with over 120,000 Ugandans engaging, demonstrating a shared understanding that “it is no longer the responsibility of URA or government to build Uganda alone.”

Juma Kisaame, the URA Board Chairperson, saluted the resilience and commitment of taxpayers. “Running a business, creating jobs and meeting tax obligations on time requires commitment and resilience. Your compliance speaks to a level of professionalism that contributes directly to the stability and progress of our nation,” Kisaame said, congratulating award recipients for their leadership in both business and citizenship.

Providing an economic overview, Moses Kaggwa, Director Economic Affairs at the Ministry of Finance, Planning and Economic Development (MOFPED), highlighted the Ugandan Shilling’s stability, making it “the most stable currency in Africa over the last 10 years.” While revenues reached UGX 32.3 trillion, he stressed the need for more, especially as the country moves to implement its ambitious “10-fold strategy.”

Kaggwa acknowledged the current debt of USD 32.22 billion as sustainable in the medium term but emphasized the urgency to reduce borrowing through increased revenue collection. He identified anchor sectors crucial for economic growth: Agro-industrialization, Tourism development, Mineral Development, and Science and Technology. “We can’t continue borrowing. We need to bring this down so we can sustain our economy and the only way we can do this is by raising revenues,” he appealed to taxpayers, assuring government support for the private sector with enablers like roads, railways, and security.

Catherine Donovan Kyokunda, Commissioner Legal Services and Board Affairs at URA, pledged the authority’s commitment to “creating a fair, efficient, and predictable tax environment that supports investment, encourages voluntary compliance and safeguards the rights of every taxpayer.”

The unified message from leaders across the finance sector underscored a collective drive towards a financially independent Uganda, built on the foundation of diligent taxpayer compliance and modernized revenue administration.