KAMPALA, (Xinhua) --
Uganda Revenue Authority (URA) is to introduce the
Electronic Fiscal Device (EFD), a new tax monitoring
system, to record business transactions and share the
information with the tax man.
Chillanyang, assistant commissioner for business policy
URA, told Xinhua on Monday that the EFD is also expected
to assist tax payers in proper bookkeeping and sales
said there is an ongoing procurement process of the
machines and once complete, they will be progressively
He said the
machines will be mandatorily supplied to all businesses
in the country.
expected to greatly increase tax compliance because
currently we run behind all other East Africa countries
in the tax-to-GDP ratio,” he said.
statistics indicate Uganda’s tax-to-GDP ratio stands at
14 percent trailing other East African Community member
states such as Kenya at 24 percent and Tanzania at 18
said once the EFD is rolled out, all taxpayers
registered for Value Added Tax (VAT) will be obliged by
law to issue tax receipts using the electronic fiscal
machines certified by URA.
data from the machines will be automatically relayed to
the URA data base in real time, where it will be
assessed by our team,” he said.
Seruma, assistant commissioner public and corporate
affairs URA, said the machines will help increase tax
we have realised that there are many businesses which
are struggling to survive, because they lack
comprehension of the basic aspects of tax and financial
literacy. We therefore decided to launch a new
approach,” Seruma said.
advantage in it is that it also enhances the relation
between URA and the tax payers and does not waste time.
It also gives URA the time to address the unique needs
of each tax payer and make corrections on site if there
are any,” he said.
to the machines, Seruma said URA will also intensify its
Tax Katale Campaign, where tax officials interact with
the business people from their premises to give
financial literacy education and solve tax challenges.
He said all
these moves are primarily meant to bring on board the
informal sector whose contribution to tax is very low
yet their contribution to GDP is high.
financial year 2018/19, URA targets to collect over 16.3
trillion shillings (4.4 billion U.S. dollars) to finance
government expenditure. Last year the tax body failed to
hit its target by 400 billion shillings.