Da Dona
Senior Member
- Dec 16, 2025
- 134
- 134
A tense session unfolded before Parliament’s Finance Committee after the Uganda Revenue Authority (URA) and the Ministry of Finance, Planning and Economic Development presented conflicting positions on Uganda’s proposed Shs41 trillion revenue target for the 2026/27 financial year.(Nile post)
Acting URA Commissioner General Abel Kagumire told legislators that the authority is targeting Shs41.5 trillion, up from about Shs37.2 trillion in the current financial year. However, State Minister for Finance Henry Musasizi distanced the Ministry from the figure, noting it is not final and remains under review, triggering concern among lawmakers.
The disagreement drew sharp reactions, with Kira Municipality MP Ibrahim Ssemujju Nganda questioning why Parliament was being asked to consider projections that were not yet aligned within government.
Acting URA Commissioner General Abel Kagumire told legislators that the authority is targeting Shs41.5 trillion, up from about Shs37.2 trillion in the current financial year. However, State Minister for Finance Henry Musasizi distanced the Ministry from the figure, noting it is not final and remains under review, triggering concern among lawmakers.
The disagreement drew sharp reactions, with Kira Municipality MP Ibrahim Ssemujju Nganda questioning why Parliament was being asked to consider projections that were not yet aligned within government.
Acting URA Commissioner: Abel Kagumire, Nile post.
Amid the standoff, URA tabled a proposed Shs877.4 billion budget to finance its internal expenditure and support revenue collection.
Breakdown of the proposed Budget
Wages – Shs400 billion
Nearly half of the total budget is allocated to salaries, allowances, and staff-related costs.
Non-wage recurrent expenditure – Shs412 billion
This includes:
Shs23 billion for staff welfare & Entertainment
Shs17 billion for ICT systems
13 billion for Workshop and seminars
8 billion on staff training
12 billion on rental expenses,
And other travel, fuel, and administrative operations
Development expenditure – Shs64.7 billion for infrastructure, digital systems, and improvements in tax administration.
The continued spending on office rent developed a controversy on the estimated Ugandan Shs 12 billion, despite the government investing over Shs139 billion to construct the URA Tower in Nakawa.
The committee questioned why the authority is still allocating significant funds to rented office space when a purpose-built headquarters already exists.
Breakdown of the proposed Budget
Wages – Shs400 billion
Nearly half of the total budget is allocated to salaries, allowances, and staff-related costs.
Non-wage recurrent expenditure – Shs412 billion
This includes:
Shs23 billion for staff welfare & Entertainment
Shs17 billion for ICT systems
13 billion for Workshop and seminars
8 billion on staff training
12 billion on rental expenses,
And other travel, fuel, and administrative operations
Development expenditure – Shs64.7 billion for infrastructure, digital systems, and improvements in tax administration.
The continued spending on office rent developed a controversy on the estimated Ugandan Shs 12 billion, despite the government investing over Shs139 billion to construct the URA Tower in Nakawa.
The committee questioned why the authority is still allocating significant funds to rented office space when a purpose-built headquarters already exists.
Ibrahim Ssemujju Nganda led the criticism, pressing URA officials to explain the apparent contradiction between investing heavily in a central headquarters and continuing to incur rental costs. The committee also raised concerns over reports of a proposed increase in Pay As You Earn (PAYE) tax to 40%.
MP Paul Omara warned that such a move would significantly reduce household incomes and worsen the cost of living. “We cannot increase PAYE to 40%. It will affect the purchasing power of Ugandans,” he cautioned.
Minister Henry Musasizi acknowledged the need to raise more domestic revenue to improve Uganda’s tax-to-GDP ratio but clarified that tax proposals are still under discussion.
SOURCE: NILE POST
MP Paul Omara warned that such a move would significantly reduce household incomes and worsen the cost of living. “We cannot increase PAYE to 40%. It will affect the purchasing power of Ugandans,” he cautioned.
Minister Henry Musasizi acknowledged the need to raise more domestic revenue to improve Uganda’s tax-to-GDP ratio but clarified that tax proposals are still under discussion.
SOURCE: NILE POST
