Ugandan taxpayers will have to contribute more in the next financial year as the Uganda Revenue Authority (URA) aims to collect UGX 36.71 trillion in revenue for the 2025/26 financial year. This marks a significant increase from the UGX 31.37 trillion target for the current financial year (2024/25).

The Minister of State for Finance, Henry Musasizi, made this announcement while addressing Parliament’s Finance Committee. Leading a delegation from URA, Musasizi presented the Authority’s Ministerial Policy Statement for 2025/26, clarifying discrepancies between URA’s revenue projections and figures in the Appropriation Bill 2025.

Musasizi explained that the Commissioner General’s initial projection was UGX 35.692 trillion, based on estimates before the introduction of new tax measures. However, after incorporating additional taxation policies, the final target was revised to UGX 36.71 trillion.

MP Ibrahim Ssemujju (Kira Municipality) questioned the basis of these figures, arguing that past revenue targets often fell short of expectations. “Are these projections set by URA, or does the minister simply adjust the figures to match an expanding budget?” he asked.

In response, Musasizi defended the targets, citing economic expansion and enhanced tax administration as key factors. “The economy has been growing at an average rate of 6%, and new tax policies will generate additional revenue. Furthermore, URA is strengthening its efficiency through staff recruitment and better enforcement, which will contribute to increased collections,” he noted.

The committee also examined URA’s request for UGX 18.2 billion in medical expenses for the upcoming financial year. Kabula County MP, Enos Asiimwe, sought clarity on whether these funds were designated for health insurance or direct medical supplies.

“Is this budget allocated to an insurance scheme, or does it strictly cover medication and medical services? We also have UGX 18.2 billion earmarked for insurance are these two separate expenditures, or do they overlap?” Asiimwe inquired.

URA Commissioner General, John Musinguzi, informed the committee that the Authority’s total budget for 2025/26 is UGX 764.40 billion. This includes UGX 400 billion for salaries, UGX 323.35 billion for operational costs, and UGX 40.79 billion for development projects.

Additionally, URA has long-term financial commitments extending to 2029/30, totaling UGX 425.16 billion. These include:

UGX 332.26 billion for IT infrastructure and related technology

UGX 19.25 billion for office equipment and furniture

UGX 72.65 billion for vehicles, motorcycles, and speedboats

Parliament’s Finance Committee is set to further examine URA’s budget proposal before submitting recommendations to the House for approval.