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Uganda Revenue Authority-Accountability.Pdf Accountability Budget Framework Paper Vote: 141 URA Vote Summary V1: Vote Overview This section sets out the Vote Mission, Strategic Objectives, and provides a description of the vote's services (i) Snapshot of Medium Term Budget Allocations Table V1 below summarises the Medium Term Budget allocations for the Vote: Table V1.1: Overview of Vote Expenditures (UShs Billion) 2014/15 MTEF Budget Projections 2013/14 Approved Spent by (i) Excluding Arrears, Taxes Outturn Budget End Sept 2015/16 2016/17 2017/18 Wage 107.132 107.132 26.783 107.132 127.540 127.553 Recurrent Non Wage 82.626 84.089 20.273 84.089 100.906 100.916 GoU 19.225 40.500 11.497 40.500 48.600 48.605 Development Ext. Fin 0.000 3.599 0.000 5.843 1.983 0.000 GoU Total 208.983 231.720 58.553 231.720 277.046 277.074 Total GoU + Ext Fin. (MTEF) 208.983 235.319 58.553 237.564 279.029 277.074 Arrears 0.000 0.000 0.000 0.000 N/A N/A (ii) Arrears and Taxes Taxes 0.000 0.000 0.000 0.000 N/A N/A Total Budget 208.983 235.319 58.553 237.564 N/A N/A ** Non VAT taxes on capital expenditure The chart below shows total funding allocations to the Vote by Vote Function over the medium term: Chart V1.1: Medium Term Budget Projections by Vote Function (UShs Bn, Excluding Taxes, Arrears 290 280 270 260 250 240 230 220 210 Revenue Collection & Administration 2014/15 Approved Budget Estimates 2015/16 Budget Projections 2016/17 Budget Projections 2017/18 Budget Projections (ii) Vote Mission Statement Section B - Vote Overview Accountability Budget Framework Paper Vote: 141 URA Vote Summary (ii) Vote Mission Statement The Vote's Mission Statement is: To Provide Excellent Revenue Service with Purpose and Passion (iii) Vote Outputs which Contribute to Priority Sector Outcomes The table below sets out the vote functions and outputs delivered by the vote which the sector considers as contributing most to priority sector outcomes. Table V1.2: Sector Outcomes, Vote Functions and Key Outputs Sector Outcome 1: Sector Outcome 2: Sector Outcome 3: Efficient service delivery through Compliance to accountability policies, Accountability Sector’s contribution to formulation and monitoring of credible service delivery standards and economic growth and development budgets. regulations. enhanced Vote Function: 14 54 Revenue Collection & Administration Outputs Contributing to Outcome 1: Outputs Contributing to Outcome 2: Outputs Contributing to Outcome 3: None None Outputs Provided 145401 Customs Tax Collection 145402 Domestic Tax Collection 145403 Tax Investigations V2: Past Vote Performance and Medium Term Plans This section describes past and future vote performance, in terms of key vote outputs and plans to address sector policy implementation issues. (i) Past and Future Planned Vote Outputs 2013/14 Performance During the FY 2013/14, URA was expected to collect UGX 8,534.51 Billion. However, UGX 8,031.01 Billion was collected representing a growth of 12.33% compared to the UGX 7,149.48 Billion collected in FY 2012/13. This represents a performance of 94.1% of the target. The revenue collected for FY 2013/14 was able to finance 71.5% of the Uganda's national budget. Domestic taxes collections amounted to UGX 4,671.21 Billion. This represents a growth of 9.27% (UGX 396.48 Billion) compared to the same period last year and the performance rate of 90.96%. Revenue from international trade taxes were UGX 3,548.00 Billion. This represents a growth of 15.55% (UGX 477.49 Billion) compared to the same period last year and the performance rate of 98.84% against target. Below is a tax-head analysis highlighting the factors that are linked to the different performance rates within the financial year. Preliminary 2014/15 Performance URA’s performance in quarter one FY2014/15 in terms of revenue to target was 98.71%. Compared to the first quarter of FY2013/14, there was a growth in revenue of 14.32%. International trade performed at 98.44% while domestic taxes performed at 99.03%.In comparison to the first quarter FY2013/14, there was a growth in revenue of 18.25% in international trade and 10.94% in domestic taxes Domestic Taxes: Domestic taxes’ collections in quarter one of the FY 2014/15 were UGX 1,124.12Bn against a target of UGX 1,135.15Bn, registering a deficit of UGX 11.03 Bn. The performance was 99.03%. However, Section B - Vote Overview Accountability Budget Framework Paper Vote: 141 URA Vote Summary compared to the same period in FY 2013/14; there was a growth in revenue of 10.94% (UGX 110.87 Bn) Reasons attributed to the 99.03% performance: 1. Improvement in income tax declarations from collaboration with local authorities. The TREP initiative has continued to yield results from the extensive field operations during the year 2013/2014. A number of companies that did not declare and pay provisional tax during first quarter last financial year, have made substantive remittances of this tax for the same period this financial year. The companies include: Alcatel- Lucent South Africa (UGX 0.54 Bn), Nile Hotel International (UGX 0.47 Bn), Brac Uganda LTD (0.47 Bn), SBG securities LTD (UGX 0.43Bn) and Frontier Medex LTD (0.42 Bn). 2. Revenue spill overs from FY 2013/14 which had not been anticipated this year. For example Civil Aviation Authority paid UGX 9.57Bn while Exalo paid UGX 4.02Bn in corporation tax. 3. Withholding tax on supplies registered growth of 38.91% which was influenced by increased remittances from players in some sectors compared to same period last financial year. Information and communication sector, Airtel Uganda increased by 420.46% (UGX 2.69Bn), Orange Uganda by 192.57 %( UGX 2.28Bn) and MTN Uganda by 153.06 %( UGX 8.24Bn). Electricity, gas, steam and air conditioning supply sector, Umeme increased by 328.63%(UGX 4.28Bn) and UETCL by 217.60%(UGX 1.77Bn) 4. The statutory requirement of payment of 30% of tax in dispute before a case is presented in court yielded UGX 25.7Bn from National Social Security Fund. 5. Increased capital investments by taxpayers affected the performance of VAT in the electricity, telecommunication and water subsectors 6. The unanticipated increase in maintenance costs and investment costs in the electricity sub sector that increased the input tax claimed. Offsets amounting to UGX 9.02Bn due to a capital investment program worth USD 100mn by UMEME to replace infrastructure including switches, cables, transformers and other appliances. Increased input tax by UETCL amounting to UGX 6.62Bn due to the running contract for a fixed supply of power per period by UETCL regardless of the levels of consumption. 7. Reduction in number of employees from 122,144 employees to 118,114 reducing the wage bill compared to the same period last financial year arising from lay off of staff due to business activity scale down in some sectors e.g Oil and Gas. International Trade Taxes International trade taxes collections in quarter one of the FY 2014/15 were UGX were 1,018.05Bn against a target of UGX 1,034.23Bn, a performance rate of 98.44% (UGX 16.18 Bn deficit) However, compared to quarter one FY 2013/14, there was a growth in revenue of 18.25%(UGX 157.13Bn) Reasons attributed to the performance: 1. A 15.56% growth in VATable imports from UGX 1,968.97Bn during the first quarter of FY 2013/14 to UGX 2031.28Bn during the first quarter of FY 2014/15. 2. Low productivity in the port of Mombasa that affected ship discharge operations during the first 2 months of this financial year as a result of rehabilitation of the port infrastructure and the prolonged rains in the coastal region. Section B - Vote Overview Accountability Budget Framework Paper Vote: 141 URA Vote Summary 3. The petroleum duty performance was attributed to low port productivity during the first 2 month as a result of rehabilitation of the port infrastructure and prolonged rains in the coastal region. This has been resolved and as a result, the cumulative shortfall has reduced from UGX 23.95Bn as at the end of August 2014 to UGX 7.85Bn as at the end of September 2014. 4. Front loading of imports in the last two months of FY 2013/14 done in anticipation of tax policy changes in the budget. This applied to cigarettes and motorcycles. 5. Decline in import duty collection of the major imports during the first quarter FY 2014/15 as compared to the same period last year: Major items that registered a decrease during the first quarter FY 2014/15 include: • Iron/steel (7308) registered a decline of 76.56% from UGX 10.00 Bn during the first quarter of FY2013/14 to UGX 2.34 Bn during the first quarter of FY2014/15. • Furniture (9403) registered a decline 45.51% from UGX 3.28 Bn during the first quarter of FY2013/14 to UGX 1.79Bn during the first quarter of FY2014/15. • Tyres (4011) registered a decline of 16.88% from UGX 4.94 Bn during the first quarter of FY2013/14 to UGX 4.10 Bn during the first quarter of FY2014/15. Table V2.1: Past and 2015/16 Key Vote Outputs* 2014/15 2015/16 Vote, Vote Function Approved Budget and Spending and Outputs Proposed Budget and Key Output Planned outputs Achieved by End Sept Planned Outputs Vote: 141 URA Vote Function: 1454 Revenue Collection & Administration Output: 145401 Customs Tax Collection Description of Outputs: 18% Growth in customs Comparing the first quarter 18% Growth in customs Revenue performance of FY 2014/15 to Revenue that of FY 2013/14, Customs 100% Customs revenue taxes’ collections grew by 100% Customs revenue collection to target.
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