URA Sets 10 Million Taxpayer Target Before Considering Tax Cuts

The Uganda Revenue Authority (URA) has indicated that any future discussions regarding tax cuts are contingent upon successfully expanding the national tax register to 10 million active taxpayers.

Speaking on revenue mobilization strategies, tax officials emphasized that a wider tax base is essential for the country’s financial sustainability. By bringing more eligible citizens and businesses into the formal tax system, the burden of funding public infrastructure and government services can be distributed more evenly across the population.

Currently, a relatively small segment of the population bears the brunt of national taxation. URA believes that reaching the 10 million milestone will generate sufficient domestic revenue to make fiscal policy adjustments, such as tax reductions, feasible without compromising government operations or plunging the country into deeper debt.

Business communities and taxpayers have frequently called for relief amid rising operational costs. However, tax authorities maintain that structural expansion of the register must precede any meaningful dialogue on lowering rates.

Efforts to achieve this target will likely involve leveraging digital technologies, improving data integration with other government agencies, and intensifying taxpayer education campaigns to encourage voluntary compliance.

Read more details in the original report on Daily Monitor.