The Uganda Revenue Authority (URA) says Uganda can achieve its ambitious domestic revenue targets over the next four years if government, businesses, and taxpayers work together to expand the country’s tax base.
The government has set a domestic revenue target of Shs46 trillion for the 2026/27 financial year, with URA expected to collect Shs40.16 trillion in taxes.
The revenue drive is part of a broader government strategy to increase tax collections from 14.2 percent to 20 percent of Gross Domestic Product (GDP) within four years as Uganda seeks to finance more of its development programmes through domestic resources rather than borrowing.
The shift comes amid rising public debt levels over the past decade, which have increased pressure on the national budget through growing debt servicing costs.
At the same time, external financing for development projects has become more challenging due to declining access to concessional loans, higher commercial borrowing costs, and reduced availability of grants from development partners.
Although Uganda expects to start benefiting from oil revenues, the government says these earnings alone will not be sufficient to meet its development ambitions, making tax revenue a critical source of funding for the national budget.
Speaking at the launch of the National Post-Budget Dialogue in Kampala, Finance Minister Henry Musasizi said increased domestic revenue mobilization will help reduce dependence on borrowing and enable government to finance more development projects using locally generated resources.
The Finance Ministry and URA have emphasized that broadening the tax base, improving compliance, and bringing more businesses into the formal economy will be key to achieving the country’s revenue goals.
By Our Reporter
8th July 2026
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