UGANDA, Kampala | Real Muloodi News | A new local government (LG) own-source revenue mobilisation strategy sets an ambitious revenue collection target of at least USh1 trillion over the next two years.
Speaking to journalists on Tuesday 26th March, 2024, Mr Raphael Magyezi, the Minister of Local Government, outlined the initiative, stating its primary goal is to elevate LGs from mere recipients of central government funding to active contributors to the nation’s revenue stream.
“We have been making efforts as the ministry, but in partnership with civil society, the Uganda Revenue Authority (URA), and other ministries such as Finance, we are now focusing on enhancing our revenue collection,” he explained.
Magyezi stressed the importance of digitalising revenue collection processes, highlighting the shift away from traditional paper-based methods.
“We plan to collaborate with development partners and civil society to implement electronic systems. This approach has already shown promising results, such as in markets where revenue increased from USh2 million to USh20 million. Taxpayers prefer electronic transactions as they ensure transparency and reduce opportunities for mismanagement,” he emphasised.
The strategy also prioritises accountability, aiming to tie revenue collection directly to improved service delivery, thereby positioning LGs as key agents of economic development and community welfare.
Kelemensio Busingye, the manager of revenue collection at URA, provided insights into the progress made thus far. Out of the 176 LGs (comprising 135 districts, 31 municipal councils, and 10 cities), URA has engaged with 155.
Over the past two and a half years, USh144.6 billion has been collected.
“In a rapidly evolving world, innovation is crucial for increasing government revenues. LGs must embrace emerging IT trends and adapt their processes, procedures, and systems to meet the changing needs of taxpayers,” Busingye remarked.
She urged all stakeholders involved in the revenue collection strategy to work collaboratively towards achieving its objectives, ensuring effective implementation and positive outcomes.
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