UGANDA, Gulu | Real Muloodi News | Gulu City Council launched a new digital revenue collection system called the Integrated Revenue Administration System (IRAS) to raise USh 3.8 billion in FY2021/2022.
Underperforming tax collections in FY 2019/2020, where they only collected USh 1.6 billion of an expected USh 4.8 billion, led to the implementation of this system.
Also, in FY 2020/2021, they only collected USh 1.8 billion of a projected USh 4.7 billion in taxes.
Integrated Revenue Administration System (IRAS) is a web and mobile application platform that aids municipalities in collecting local revenue from registration, assessment, billing, payment, sensitisation of taxpayers and linking the citizens to cities.
This online system is proving to be a success. Once the system receives business details, it generates a payment registration code. The code is then used to make tax payments using mobile phones.
The Mayor of Gulu, Alfred Okwonga, reported that Gulu City collected nearly USh 1 billion in taxes in just three months.
He explained they introduced the new system to ensure quality services and said: “We stopped the traditional methods of collecting money physically where we issued receipts and brought this online payment system in place.”
The World Bank, through PPIAF Trust Fund, promoted the development of IRAS. The Public-Private Infrastructure Advisory Facility (PPIAF) is helping various governments to enhance policies and regulations that support sustainable infrastructure with government-private sector partnerships.
The government is putting significant efforts into the digital revenue collection system. With the support of Oxfam International Uganda and Southern and Eastern Africa Trade Information and Negotiations Institute, they developed the Local revenue enhancement plan (LREP).
Mr Moses Otimong, the town clerk, says that: “The revenue enhancement plan started in April with the engagement of the business community, political leadership and technocrats.”
The system is already active in Nansana, Fort Portal, Amuria, Yumbe, Zombo and Adjumani. It has helped decrease corruption levels and streamlined revenue collection by setting mobilisation guidelines and keeping revenue registers updated.
Gulu City also steered a new valuation of property exercise in July this year, aiming to expand its revenue base. The activity focused on registering all properties and businesses in the city as a baseline for a cost analysis for new tax reforms to increase the revenue base, as well as to improve city planning and development.
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