By Fidel Boy Leon
The Uganda Revenue Authority (URA) has recorded a rare fiscal surplus, collecting Shs100 billion above its revenue target for the 2024/25 financial year.
The surplus, announced at URA headquarters in Kampala by Commissioner General John Rujoki Musinguzi, marks the first time in nearly a decade that the tax body has surpassed its annual goal.
The extra funds, equivalent to the entire national budget allocation for the Emyooga initiative or enough to finance 1,000 parishes under the Parish Development Model (PDM), come as a significant fiscal development amid Uganda’s push to increase domestic resource mobilisation.
“Our net revenue collection for the financial year 2024/25 stood at Shs31.3 trillion, achieving a performance rate of 100.84%,” said Mr. Musinguzi announced.
The initial revenue target was Shs31.3 trillion, a figure that seemed out of reach after sluggish mid-year performance. However, a strong collection surge in the final month helped URA exceed expectations, resulting in a Shs100 billion surplus.
Analysts say the magnitude of the surplus cannot be overstated.
Policy expert Julius Mukunda noted that the performance highlights efficiency rather than increased tax pressure.
“Closing revenue gaps without introducing new tax measures shows URA’s administrative improvements are paying off,” Mukunda said. “The fruits of automation and the Electronic Fiscal Receipting and Invoicing System (EFRIS) are becoming evident.”
The Shs100 billion is also equivalent to the government’s 2025/26 allocation for the Emyooga programme, a presidential initiative aimed at promoting job creation and entrepreneurship through SACCOs. Alternatively, the funds could fully fund 1,000 parishes under the PDM, one of Uganda’s flagship programmes targeting household poverty by integrating subsistence farmers into the cash economy.
According to Mr. Musinguzi, the surplus was driven by closing tax leakages, enhanced taxpayer compliance, and greater automation in collection processes.
URA registered a 15% growth in revenue compared to the previous financial year, translating to an increase of about Shs4 trillion.
“This success is a result of improved administrative strategies, a growing economy, and cooperation from taxpayers,” Musinguzi added.
Domestic tax collections reached Shs21.2 trillion against a target of Shs21.1 trillion, generating a surplus of Shs131 billion. Meanwhile, international trade revenue stood at Shs11.2 trillion, surpassing the Shs11.1 trillion target by Shs49 billion.
Despite the achievement, URA faces a much tougher task ahead. The 2025/26 revenue target is set at Shs36.7 trillion, a 17% increase or Shs5.3 trillion more than what was collected this year.
To meet this ambitious goal, URA is expected to double down on: enforcement and compliance efforts, expansion of the tax base and strengthening of digital tax systems like EFRIS and TIN registration.
Beyond the numbers, this year’s surplus may help rebuild public trust in domestic tax institutions. Citizens and civil society have long criticised the government for inefficiencies in spending and shortfalls in service delivery, especially within local economic empowerment programmes like PDM and Emyooga.
Now, with the surplus equivalent to fully funding either initiative, there are growing calls for the funds to be channeled into productive, people-centred development.
“This is a real opportunity to turn numbers into impact. Let the surplus help scale up PDM, boost entrepreneurship through Emyooga, or improve public services that directly touch the population,” Mukunda advised.
URA’s Shs100 billion surplus is a milestone achievement and a testament to what focused reforms and digital transformation can yield in domestic revenue collection. But its greatest significance lies not in fiscal bookkeeping, but in how the surplus is deployed.
Whether it ends up funding an extra 1,000 PDM parishes, sustaining the Emyooga initiative, or plugging gaps in essential public services, the surplus must be used to strengthen Uganda’s economic resilience from the ground up.