URA officials on duty
HABARI DAILY I Kampala, Uganda I The Uganda Revenue Authority (URA) exceeded its tax collection target by more than Shs1 trillion in June 2026, capping off the financial year with one of its strongest revenue performances, according to the Performance of the Economy Report for June 2026 released by the Ministry of Finance, Planning and Economic Development.
The report shows that total revenue collections, including grants, amounted to Shs5.81 trillion, representing 116 percent of the monthly target of Shs5.01 trillion.
According to the report, “this surplus was wholly under tax revenue while non-tax revenue and grants were short of their respective targets for the month.”
Domestic revenue collections reached Shs5.72 trillion, exceeding the planned target of Shs4.84 trillion by 18.2 percent.
Of the total domestic revenue, Shs5.57 trillion came from tax collections, while Shs156.33 billion was generated from non-tax revenue.
The report attributes the exceptional performance to stronger tax administration and improved compliance as businesses and individuals settled their tax obligations before the close of the 2025/26 financial year.
“Total tax revenue collections were Shs1,007.44 billion higher than the target for the month of Shs4,558.67 billion, implying a performance of 122.1 percent mainly on account of enhanced tax administration coupled with increased tax compliance before closure of the financial year,” the report states.
Income taxes emerged as the biggest contributor to the surplus.
The Ministry reports that direct domestic taxes registered a surplus of Shs735.51 billion above target, driven by robust collections from corporation tax, Pay As You Earn (PAYE) and withholding tax.
Corporation tax alone outperformed its target by Shs668.40 billion, while PAYE generated an additional Shs38.53 billion and withholding tax exceeded expectations by Shs91.96 billion.
Consumption taxes also posted stronger-than-expected results. Indirect domestic taxes totalled Shs869.06 billion, exceeding the monthly target by Shs20.11 billion.
According to the report, the overperformance was “largely driven by Value Added Tax (VAT), which recorded a surplus of Shs19.76 billion, while excise duty contributed an additional Shs0.35 billion above target.”
The Ministry adds that the strong performance reflected higher-than-anticipated tax collections from products such as beer, sugar and bottled water, alongside improved revenue from the construction, wholesale and retail trade sectors.
Taxes on international trade also registered impressive growth.
The report notes that taxes on international trade and transactions exceeded their target by Shs264.80 billion, driven by stronger collections from petroleum duty, VAT on imports, import duty and the infrastructure levy during the month.
The June revenue performance helped government operations end the month with a fiscal surplus instead of the projected deficit, highlighting the importance of URA’s strong tax mobilisation efforts in supporting public finances as the 2025/26 financial year came to a close.
