URA praises Sudhir Ruparelia for early EFRIS adoption
Ruparelia, one of Uganda’s prominent property owners, has been involved in the real estate sector for decades, with a substantial portfolio of commercial and residential properties.
Uganda Revenue Authority (URA) Commissioner General John R. Musinguzi has singled out businessman Dr Sudhir Ruparelia for embracing the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) early, describing him as one of the pioneers of the digital tax system among landlords.
“We appreciate the pioneers that have embraced the usage of EFRIS like Dr Sudhir Ruparelia,” Musinguzi said.
Musinguzi made the remarks while meeting Kampala landlords as part of URA’s efforts to strengthen rental income tax compliance in the capital.
Ruparelia, one of Uganda’s prominent property owners, has been involved in the real estate sector for decades, with a substantial portfolio of commercial and residential properties.
Musinguzi said the early adoption of EFRIS by major taxpayers could help demonstrate the importance of digital tax compliance across the sector.
“It’s not a small thing for our partners, the landlords, to set aside time to listen to tax matters,” he said.
Real estate key to the economy
Musinguzi highlighted the significant contribution of the real estate sector to Uganda’s economy, noting that it creates employment, provides a market for locally manufactured products and supports the financial services sector.
He said real estate contributes about 6% to 7% of Uganda’s GDP and remains one of the country’s fastest-growing sectors.
However, he noted that the growth of the sector has not been matched by improvements in rental income tax compliance.
“Last FY, all taxes grew by double digits, with an average growth of about 14%, but the rental income tax head declined by 1%,” Musinguzi said.
He said URA’s engagement with landlords was intended to understand the reasons behind the decline and develop solutions collaboratively rather than focus on punishment.
“The purpose for this meeting was to have a candid conversation, rectify the decline to what is happening in this sector, not to apportion blame, penalise or victimise each other,” he said.
URA targets stronger compliance
Musinguzi said closer cooperation between URA and landlords could help narrow the compliance gap and improve revenue mobilisation.
“The sooner we work together to improve compliance in this sector, the quicker we shall be closing the gap identified, for example, capping from 50% to 70%,” he said.
He linked improved domestic revenue mobilisation to Uganda’s broader fiscal challenges, including the growing cost of servicing public debt.
“Our tax to GDP is now at 14%, debt burden has increased with 40% of what is collected used to service the debt,” Musinguzi said.
He said Uganda needs to work towards raising the tax-to-GDP ratio to at least 25% in the short term, with the real estate sector expected to play a role in expanding the domestic revenue base.
“The real sector [is] being a strong pillar in mobilisation through the use of EFRIS,” he said.
URA promises EFRIS support
Musinguzi assured landlords that URA would provide technical assistance to help them comply with EFRIS requirements.
“If we agree today and work together on the front of compliance, URA will do the following to support you,” he said.
He outlined two immediate measures: dedicating a team to support landlords with EFRIS onboarding, and providing written guidance and physical engagements to help taxpayers understand and comply with the system.
The approach signals a renewed emphasis on taxpayer education and technical support as URA seeks to improve compliance in the rental sector while expanding the use of digital systems in domestic revenue collection.
For landlords, the engagement provides an opportunity to address practical compliance challenges, while for URA, stronger adoption of EFRIS is expected to improve transparency and visibility of transactions in the property sector.
