Significant growth in the banking, telecom, and manufacturing sectors has boosted tax collections beyond targets for the month of July, latest Uganda Revenue Authority (URA) figures indicate.

URA Commissioner General Dr Allen Kagina

The tax body collected sh523.86b in July bypassing the sh513.37b target as growth in the economy starts to rebound following declines in inflation and interest rates.

“Net collections grew by 30.27% from July 2011. High inflation and interest rates affected collections last year, however, situations have significantly improved,” said Richard Kamajugo, the URA commissioner for customs.

“I am confident that collections will continue to improve for most of this year,” he added.

Tax collections tend to dip during the month of July which is the start of the new financial year, before picking up in successive months.

The tax body recorded surpluses on local Value Added Tax on sugar of sh2.2b after tax waivers imposed in July last year were lifted and a sh26.59b surplus from withholding tax. Additional taxes were imposed on beer and withholding taxes.

Source The New Vision

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