Uganda to Integrate National ID Numbers with Tax System to Boost Revenue

Uganda is moving forward with integrating the National Identification Number (NIN) as the primary tax identification for individuals, a reform expected to significantly broaden the country’s tax base and improve overall tax administration. The Minister of State for Finance, Planning and Economic Development (Planning), Hon. Amos Lugoloobi, announced the initiative, emphasizing its goal to create a unified and reliable system for taxpayer identification.

This integration aims to eliminate inconsistencies and duplicate records that have plagued the current system. According to data presented, Uganda has approximately 5.7 million registered taxpayers, with 5.4 million being individuals. However, a substantial portion, around 2.1 million, remain inactive. The government anticipates that by activating more taxpayers through this unified system, a considerable amount of revenue, estimated at Shs420 billion, could be mobilized.

Progress has been made, with nearly 40% of individual taxpayer records already matched with NINs as of September 30, 2026. While the primary focus is on individuals, plans are in place for non-individual taxpayers like companies, using their entity registration numbers. Foreign taxpayers and diplomats will utilize applicable identification numbers, with specific arrangements being developed for refugees.

However, the transition has raised questions. Concerns have been voiced regarding Ugandans not registered with the National Identification and Registration Authority (NIRA), with estimates suggesting over 10 million individuals lack a NIN. Additionally, the effectiveness of anticipated revenue increases is debated, given the high number of inactive taxpayers. Privacy concerns have also been raised concerning data protection during the integration process.

Despite these concerns, proponents highlight successful integrations in other African nations like Ghana and Rwanda, urging for the implementation of the planned reform. The integration seeks to bring efficiency and integrity to Uganda’s revenue collection efforts.

Source: Parliament of Uganda