The Uganda Revenue Authority (URA) has called on the Judiciary to urgently resolve a growing backlog of tax-related cases, warning that delays are holding up more than Shs670 billion in potential revenue. Speaking during the induction of new justices of the Court of Appeal, the URA Commissioner General, Mr John Rujoki Musinguzi, said 58 tax appeals remain unresolved at both the Court of Appeal and Supreme Court, significantly affecting the country’s ability to meet its fiscal targets.
‘There are currently 58 appeals involving URA pending in the Court of Appeal and Supreme Court, with a combined value of over Shs671 billion. This is a substantial amount, and we appeal to the Judiciary to prioritise these cases,’ Mr Musinguzi said. Uganda’s tax collection has steadily improved over the past decade, but challenges persist.
In the 2024/2025 financial year, URA collected approximately Shs35 trillion-a notable increase from previous years, yet still short of government expectations. The government has set a revenue target of Shs40 trillion for the 2025/2026 financial year, alongside a goal to raise the tax to GDP ratio from 13.9 percent to at least 20 percent.
This push is part of efforts to reduce reliance on external borrowing and donor funding, while financing infrastructure and social services. However, prolonged tax disputes in court have created a bottleneck, delaying the collection of significant revenue. These unresolved cases not only stall inflows but also create uncertainty among taxpayers and investors, undermining compliance and confidence. Mr Musinguzi warned that the ripple effects of unresolved tax disputes extend beyond URA’s operations.
‘Prolonged tax disputes have profound implications, not just for the tax authority and taxpayers, but for the entire economy. We need timely, predictable, and consistent judicial decisions,’ he added. He described the Judiciary as a key stakeholder in revenue mobilisation and national development.
‘We see the Judiciary not only as an impartial arbiter but as a strategic partner in building public confidence in the tax system. Transparent and efficient justice encourages voluntary compliance and supports inclusive growth,’ he said. The induction brought together justices of the Court of Appeal, legal professionals, tax experts, and policymakers to examine Uganda’s legal and policy environment around taxation. Key topics included oil and gas taxation, tax and insolvency, and the impact of global business trends on domestic tax law.
Mr Musinguzi also highlighted URA’s ongoing digital transformation, including the roll-out of electronic invoicing, digital tax stamps, and online payment systems aimed at improving transparency and efficiency. However, he noted that these advances are introducing new legal complexities.
‘Digitalisation brings new challenges and questions around digital evidence, data integrity, privacy, and cross-border transactions. Many of these issues don’t fit neatly within existing legal frameworks. We welcome the Judiciary ‘s own steps toward innovation, including the use of virtual hearings, digital registries, and the Integrated Case Management Information System (ICMIS), and we commend it for embracing technology. With continued collaboration, we can reduce prolonged litigation, promote predictability in judgments, and better serve both taxpayers and the nation,’ he said.
Deputy Chief Justice Flavian Zeija acknowledged the delays in resolving tax cases and emphasised the need for reforms to improve judicial efficiency. ‘Tax is another complex and evolving area. Therefore, this training on tax adjudication for Justices of the Court of Appeal is both timely and necessary. It is imperative for me to emphasise the need for the Judiciary to adjudicate tax disputes in a timely manner. As you may be aware, it is through taxation that the government is able to provide most public and social services across the country,’ Justice Zeija said. He stressed that judicial decisions can have far-reaching consequences, particularly for Uganda’s investment climate.
‘Besides timely resolution of tax disputes being essential for revenue collection, it also builds investor confidence, which in turn promotes socio-economic development. Sometimes, our decisions can either make or break that confidence. Taxation has evolved significantly at the international level because we now live in a global village. It is therefore problematic to assume that we can sit in our chambers without understanding global trends. Otherwise, we may issue a decision that leads to a withdrawal of investors or capital,’ he further said. Justice Zeija urged judges to stay informed about international tax developments to avoid rulings that might inadvertently drive away investment.
‘I am not saying that every decision must favour investors, but we must always be cautious and well-informed about international trends, so that we can make the right decisions, which are guided by the law and aligned with the global context,’ he added. He also revealed that the Court of Appeal and Constitutional Court are currently grappling with a backlog of 13,474 cases, posing a serious challenge to timely justice delivery. ‘The question we must ask ourselves is: how can we deliver justice efficiently amid such a workload? This induction offers a valuable platform to reflect on that and plan accordingly,’ he said.