malady geneva;”>The tax body boss Allen Kagina said in May, page her team collected 499.64bn, thus registering a deficit of Shs22.13bn.
Compared to May 2011, net collections grew by 17.50% (Shs74.43bn).
“On a cumulative basis, net revenue out turn for the period July 2011 to May 2012 was Shs 5,455.98bn against a target of 5,522.83bn, posting a deficit of 66.84bn,” Kagina told press on Thursday in Kampala.
Kagina attributed the low tax collections to excise duty on cigarettes, cement and petroleum which performed below target.
However, compared to the same period of the financial year 2010/11, collections increased by Shs 917.48bn.
The Net Domestic tax collections for May 2012 amounted to Shs249.39bn against a target of Shs261.39bn, thus a net deficit of Shs2bn but a growth of 21.93% as compared to May 2011.
Net collections from International Trade Taxes were Shs250.25bn against a target of Shs260.37 bn, registering a deficit of Shs10.12bn though a growth of 11.24% as compared to May 2011.
On a cumulative basis, net Domestic Tax revenues amounted to Shs2,800.16 bn against a target of Shs2,807.82bn registering a cumulative shortfall of Shs7.66bn while net International Trade Taxes registered a cumulative deficit of Shs65.31bn with total collections of Shs2,657.85bn against a target of Shs2,723.16bn.
Petroleum duty collections for the month of May 2012 performed below the anticipated target of Shs86.73bn by Shs27.77bn and compared to May 2011, the petroleum duty collections decreased by 15.88%.
International Trade Taxes on other items except Petroleum performed above the expected target. Overall, fuel volumes for the month decreased by 12.52% as compared to volumes of May 2011.
PAYE posted a deficit of Shs19.47bn in the month of May 2012.
Excise collections from cigarettes for the month of May 2012 recorded a shortfall of Shs 0.13bn and this performance was attributed to the industry players exporting most of their products.
May exports were 95,660mls whereas April exports were 58,600mls.
In May alone exports contributed 69% of total sales.
Excise collections from the cement industry for the month of May registered a shortfall of Shs 0.50bn and this performance was due to the breakdown of the Tororo Cement Industry machinery and the slowdown in the construction sector, according to Kagaina.
Despite the shortfall in tax collections, there were a number of positive initiatives.
Overall collections from Indirect domestic taxes (Local excise and local VAT) for the month of May 2012 posted a surplus of Shs15.55bn.
More importantly, there was improved performance of tax on bank interest resulting from increased volume of treasury bonds as BOU tightens monetary policy.
The May 2011 tax collections on bank interest were Shs9.9Bn whereas May 2012 collections were Shs13.32bn, posting an increase of 34.58%.
In the same month – Tax on bank interest surpassed its target by Shs 2.1bn which was a performance of 118.68%
In a related development, it emerged that the customs department was improving communication by updating their clients on transaction by them sending short messages.
The tax body further noted that a new motor vehicle module which eases registration will be launched on 1st July.
With a Tin number, all motor vehicle owners will have to re-register their information into a new system.
URA officials also revealed that most smuggled goods were cigarettes, wines and spirits, polythene bags and garments.
Outright smuggling was at 28.12%, undervaluation – 40.8% and misdeclaration at 25.18%.