Uganda Revenue Authority Launches 3-Year Digital Strategy in Partnership with UNDP
The Uganda Revenue Authority (URA) has embarked on a groundbreaking three-year digital strategy in collaboration with the United Nations Development Programme (UNDP) to revolutionize tax administration by integrating technology. This strategic initiative aims to enhance URA’s efficiency, automate tax processes, improve quality assurance, and combat revenue leaks. It also places a strong emphasis on client-centric services, ensuring that taxpayers can readily meet their obligations, including tax registration, on-time filing, payment, and accurate reporting.
Speaking at the strategy’s launch in Nakawa on Friday, Hon. Matia Kasaija, the Minister of Finance, Planning, and Economic Development, expressed his unwavering support for URA’s digital transformation journey. He challenged the URA team to raise the country’s tax-to-GDP ratio from the current 14% to an ambitious 20% within the next 2-3 years. He emphasized the importance of generating revenue to create jobs for the youth, support industries, and invest in critical infrastructure while reducing the need for external borrowing.
Commissioner General John R. Musinguzi pledged that URA would continue to add value to its mission of mobilizing revenue for national development transparently and efficiently by digitizing its processes. He stressed that technology is key to handling revenue effectively, promoting transparency, and minimizing conflicts related to tax compliance.
Musinguzi outlined five key areas that URA has earmarked to generate sufficient revenue for the government:
- Digitizing Processes: Implementing efficient and transparent digital processes.
- Integrity and Professionalism: Ensuring all URA staff serve with integrity and professionalism.
- Stakeholder Engagement: Enhancing stakeholder engagement and tax sensitization.
- Innovation and Research: Investing in innovation and research for improved data.
- Data Center: Embracing a fully-fledged data center for simplifying taxation and big data analytics.
Musinguzi commended the Government of Uganda for its investments in the ICT sector, which have transformed not only tax processes but also improved URA’s interactions with stakeholders.
Sheila Ngatia, the Deputy Resident Representative of the UNDP, lauded URA for its digital strategy aligned with the government’s digital agenda, focusing on skills development, digital services, cybersecurity, innovation and entrepreneurship, and the necessary enabling environment and infrastructure. She emphasized the strategy’s potential to enhance efficiency and leverage ICT to mitigate revenue leakages, urging URA to invest in robust cybersecurity and empower all Ugandans to enjoy the benefits of a digitalized economy.
Robert Mutebi, the Commissioner of Information Technology & Innovation, underscored the critical role of digital transformation in improving tax administration, particularly in terms of efficiency, speed-to-serve, and the capacity to analyze insights from diverse data sources.
Meanwhile, URA has already introduced several solutions to streamline taxpayer compliance and interactions. These include Electronic Receipting and Invoicing System (EFRIS), Digital Tax Stamping (DTS), Customer Relationship Management tools, non-intrusive inspection with scanners at customs borders, Bond Warehouse Management system, Rental Tax Income Management solutions, a multi-touchpoint call center, and various enhancements to taxpayer interfaces such as the web portal, mobile app, and USSD menu.