URA ramps up financial year-end tax payments

With less than 30 days left to close the 2025/2026 financial year, Uganda Revenue Authority (URA) has urged taxpayers to clear outstanding obligations, file pending returns, and take advantage of tax waivers before the June 30 deadline.

URA Commissioner General John Rujoki Musinguzi said in a statement at the weekend that URA revenue target of Shs36.7 trillion was within reach and is expected to be achieved if taxpayers pay their outstanding.

‘We are confident that with the help of every taxpaying citizen, this target is possible. Compliance is a shared responsibility. When businesses and individuals pay on time, we can fund the services that drive Uganda’s growth,’ he said, noting that despite rising economic pressures, several taxpayers had paid their tax obligation.

He also noted that URA had, during the year, leaned on technology and service improvement, not just enforcement, to make compliance easier, a trend that is expected to continue in the next financial year.

‘Through our Digital Strategy, we hope to serve our clients better and faster. This technology will transform the entire tax administration by offering instant services, reducing queues and backlog. Our goal is to make it simple for you to do the right thing,’ he said.

Musinguzi also urged taxpayers to file all outstanding returns within the defined deadlines, noting that filing on time reduces penalties and demonstrates good faith.

‘Filing is the first step. It keeps you compliant and opens the door for us to work with you on manageable payment arrangements. Waiting only increases penalties,’ he added.

Taxpayers with arrears still have a window, with URA currently offering relief on penalties and interest for those who voluntarily disclose and settle principal tax arrears.

The waiver applies to taxes such as Value Added Tax, Pay As You Earn, and income tax, but only for payments made on or before June 30, 2026.

For many businesses, this means clearing old balances after the deadline; standard penalties and interest will apply in full.

‘Do not wait for the last minute to make payments; systems get congested, banks take time to process payments, and late action attracts penalties. Act now and keep your business running without interruption,’ Musinguzi said.

URA says it is prioritizing mediation, stakeholder engagement, and tax education over heavy-handed enforcement to recover revenue. It is also stepping up surveillance at borders to deter smuggling, which erodes the tax base.

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