Election Season Slows URA Operations, Hits Revenue Targets

The Uganda Revenue Authority (URA) says disruptions linked to the 2026 general elections negatively affected revenue collection in the second half of 2025, leading to a notable shortfall against its targets.

Presenting the 2026/27 National Budget Framework Paper to Parliament’s Finance Committee, the Commissioner for Domestic Taxes, Denis Kugonza Kateeba, revealed that URA collected Shs16.476 trillion between July and December 2025, falling short of the projected Shs17.5 trillion. This performance represented 94.09 percent of the planned revenue.

Kugonza explained that election-related activities forced the authority to temporarily slow down some of its operations to allow political parties to mobilize citizens and support the broader economy.

“The total revenue collection was Shs16.476 trillion against a target of Shs17.5 trillion,” Kugonza told MPs, adding that second-quarter election interruptions significantly affected operations.

He further noted that some taxpayers reduced or paused business activities during the election period, compounding the revenue gap. However, URA remains confident of a rebound.

“We are confident that in the coming cycle of January to June 2026, we will recover rapidly and close the deficit,” he said.

Despite the slowdown, URA made progress in arrears recovery, collecting Shs186 billion through arrears management and alternative dispute resolution, alongside Shs274 billion from completed cases, easing the overall impact.

Customs enforcement was also affected, with Shs41 billion recovered against a Shs61 billion target between July and December 2025. Kugonza attributed this to reduced enforcement during electoral mobilization.

URA says it expects to fully recover the shortfall and meet its revenue targets in the months ahead.