URA Data Shows Tax Collections from Uganda’s Wealthy on the Decline
URA Data Shows Tax Collections from Uganda’s Wealthy on the Decline
Published: August 8, 2025 · ENS | Economy & Tax
Data from the Uganda Revenue Authority (URA) reveals a decline in tax contributions from High Net Worth Individuals (HNWIs) over the four years to June 2024, despite a sharp increase in their numbers.
Who Qualifies as HNWI?
- Shareholding in companies with annual turnover ≥ Shs 40 billion
- Net investable assets ≥ Shs 1 billion
- Land transactions ≥ Shs 1 billion
- Annual imports ≥ Shs 1 billion; vehicle ownership > Shs 500 million
Tax Collection Trends
Between June 2021 and June 2022, collections from HNWIs dropped significantly—from Shs 168.62 billion to Shs 121.21 billion. Though there was a partial rebound to Shs 130.06 billion in June 2023, total collections rose to only Shs 152.72 billion by June 2024. Overall, this marks a gross reduction of approximately 10.4%, or Shs 78 billion, over the four-year period.
- Four-Year Decline: Tax contributions from the wealthy dropped despite a nine-fold increase in taxpayer numbers.
- Sector Details: Income and customs taxes saw the biggest declines; VAT, rental tax, and PAYE collections showed modest gains.
- Possible Causes: Economic shocks like COVID-19 and volatility may have affected both income and reporting accuracy.
The findings suggest that Uganda's tax system may be underleveraging its richest citizens—a challenge for funding public services and enhancing fiscal equity.
Source: ENS-Prime — Subscriber-only content