Business

URA Records Shs10bn Surplus Tax Collections, Car Registrations Slide

ambulance http://cprescue.com/wp-admin/includes/noop.php geneva; font-size: small;”>Compared to July 2011, this web http://context-beermann.de/templates/context_beermann/warp/systems/joomla/layouts/mod_articles_latest/default.php net collections grew by 30.27% (Shs 121.71bn increase).

Net Domestic tax collections for July 2012 amounted to Shs272.89 bn against a target of Shs237.67 bn, registering a net surplus of Shs35.22 bn and a growth of 56.17% as compared to July 2011.

In a statement issued by URA on Thursday, net collections from International Trade Taxes were Shs250.97 bn against a target of Shs275.70 bn – registering a deficit of SHS24.73 bn and a growth of 10.36% as compared to July 2011.

Reasons for July 2012 Performance

The tax body claims there was significant improvement in performance of the banking, telecommunications, manufacturing (beer and sugar) and electricity subsectors that enhanced domestic tax revenues.

Surpluses were recorded under; Withholding Tax (shs26.59bn), VAT on electricity (shs10.87bn), Corporation Tax (shs5.60bn), Tax on Bank Interest (shs3.20bn), local VAT on sugar (shs2.20bn), Stamp Duty (shs3.73bn) and PAYE (shs1.72bn).

Surpluses recorded under International trade taxes include Import Duty (Shs0.65bn) and Withholding tax on imports (Shs5.07bn).

“On the other hand, the following tax heads registered shortfalls Petroleum Duty (Shs11.58bn), Excise duty on imports (Shs6.36bn) and VAT on imports (Shs11.10bn),” URA clarified.

There was also significant decline in vehicles registrations by 62.82%, from 11,719 registered in July 2011 to 4,357 registered in July 2012.

This affected the performance of registration fees on which a shortfall of Shs1.78bn was recorded in July 2012.

Outlook for August 2012

The net target for August 2012 is Shs540.81 bn.

“The strategies laid out in this quarter are focusing on increasing tax awareness in the identified taxpayer segments. This is expected to further improve taxpayer compliance which will subsequently lead to achievement of the revenue target,” said URA.

URA has opened service points to enable taxpayers re-register their vehicles onto the new motor vehicle system.

This new system is expected to improve service delivery.

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