By Ssenkayi Marvin Ezra
Parliament has approved an additional Shs 23.89 billion for the Uganda Revenue Authority (URA) to facilitate the payment of staff bonuses, following the tax body’s impressive revenue performance for the Financial Year 2024/2025. The approval was part of the Shs 8.104 trillion supplementary budget passed on Tuesday, marking a significant development in government fiscal planning for the year.
The bonus allocation stems from URA’s established performance-based reward system, which entitles staff to incentives when the institution surpasses its annual revenue targets. According to officials from the Ministry of Finance, Planning and Economic Development, the approved funds are not discretionary, but rather a statutory provision intended to motivate staff and reinforce a culture of productivity within the revenue administration framework.
URA exceeded its annual revenue target for FY 2024/25, thereby activating the performance bonus clause. The Ministry of Finance informed Parliament that this reward is essential in maintaining high levels of staff commitment—particularly in an institution tasked with mobilising resources vital for national development.
Over the years, URA has implemented internal reforms aimed at improving efficiency, strengthening compliance, and widening the tax base. These include digitisation of tax systems, taxpayer education programmes, and the rollout of the Digital Tracking Solution (DTS) to enhance transparency in the value chain. The strong revenue performance for the year reflects the impact of these continued efforts.
Officials further clarified that the bonus is intended to retain skilled staff, reduce attrition, and motivate high-calibre performance in an increasingly complex tax administration environment. Parliament was informed that the system of rewarding staff for surpassing targets is widely recognised as a global best practice in revenue collection agencies.
The Uganda Revenue Authority competes with both public and private institutions for specialised talent in fields such as taxation, audit, data analysis, law, and enforcement. A performance-linked reward structure helps safeguard institutional expertise and ensures continuity in delivering national revenue targets.
During the debate, MPs sought clarification on how the bonuses are determined and the safeguards in place to ensure accountability. The Ministry of Finance outlined that the bonus is computed based on existing legal provisions and that payments must follow strict internal and external audit procedures. URA’s human resource policy also requires clear documentation of performance metrics before any bonus is disbursed.
This level of transparency, MPs noted, helps build public trust in the revenue collection system and ensures that incentives are tied directly to measurable output.
With the country relying heavily on domestic revenue to finance development priorities, Parliament emphasised the need to support institutions like URA that consistently contribute to enhancing national revenue performance.
The approved bonus is expected to boost staff morale and reinforce URA’s ongoing reforms in tax administration, compliance enforcement, and digital transformation. Enhanced motivation, stakeholders say, will be crucial as the tax body gears up to meet future revenue targets under the National Development Plan III (NDP III) and subsequent frameworks.
The approval of the bonus caps a year of strong performance by URA and signals Government’s continued support for excellence in public service. The tax body’s commitment to innovation, taxpayer engagement, and effective enforcement places it at the centre of Uganda’s economic transformation agenda.
As the financial year progresses, URA is expected to maintain efforts to widen the tax base, promote voluntary compliance, and strengthen collaboration with other government entities to boost domestic revenue mobilisation.