President Museveni Targets UGX 37.2 Trillion Revenue in 2025/26 with Digital Tax Reforms at the Core
KAMPALA— President Yoweri Museveni has announced that the Government targets to collect UGX 37.2 trillion in revenue for the 2025/26 financial year, with a strong focus on curbing tax evasion through digital tax technologies.
Speaking during the 2025 State of the Nation Address last week, ahead of the national budget reading, President Museveni highlighted improvements in Uganda’s revenue collection capacity. By the end of the current financial year, the Government anticipates collecting UGX 31.9 trillion—equivalent to 14.3% of the country’s Gross Domestic Product (GDP).
Museveni noted that although this marks significant progress, the country’s revenue mobilization remains below the threshold needed to fund its development agenda. He pointed out that in 1986, revenue collection stood at just UGX 5 billion due to the collapse of the private sector and manufacturing. However, following the National Resistance Movement’s (NRM) economic reforms, including liberalization and public sector restructuring, the tax base has expanded.
Still, Museveni acknowledged the need for further improvement. To close the revenue gap, the Government will intensify efforts against corruption at the Uganda Revenue Authority (URA), with regular audits and expanded use of digital systems to reduce human interaction in tax processes.
He singled out the Digital Tax Stamps (DTS) and Electronic Fiscal Receipting and Invoicing Solutions (EFRIS) as key tools in strengthening tax compliance. These systems allow real-time tracking of taxable transactions, promoting accurate revenue reporting and reducing opportunities for tax evasion.
Excise taxes have been identified under the domestic revenue mobilization strategy as a high-potential area. In response to past challenges with tracking and verifying reported sales, the Government rolled out the Digital Tracking Solution in FY2019/20. Managed by SICPA Uganda under URA’s supervision, the DTS system applies secure, tamper-proof stamps on excisable goods at the point of production.
These stamps enable real-time monitoring, making it harder for businesses to under-declare sales or evade taxes. The DTS initiative has not only reduced illicit trade in excisable goods but also enhanced compliance among manufacturers and importers.
Additionally, the system supports fraud investigations by collecting forensic evidence and enhances supply chain transparency. A market surveillance feature built into the DTS platform allows URA to detect fraud hotspots, thus improving enforcement and resource deployment.
The effectiveness of this approach was evident in May 2025, when authorities seized and destroyed over 100 tonnes of non-compliant goods—including beverages, juices, and cement—due to missing DTS markings and failure to meet tax and safety standards.
2025/26 Budget Overview
In the newly announced UGX 72.1 trillion national budget, approximately 60% of the funding is expected to come from domestic revenue sources. The Government has prioritized science, technology, innovation, ICT, and the creative industries, alongside agro-industrialization, tourism development, and mineral-led industrialization, including the oil and gas sector.
Key Expenditure Allocations:
- Wages and salaries: UGX 8.57 trillion
- Non-wage recurrent expenditure: UGX 28.33 trillion
- Development expenditure: UGX 18.24 trillion
- Domestic debt refinancing: UGX 10.03 trillion
- Debt amortisation: UGX 4.98 trillion
- Repayment to Bank of Uganda: UGX 493 billion
- Settlement of domestic arrears: UGX 1.4 trillion
- Local Government spending from own revenue: UGX 328.6 billion
The President emphasized that these investments are critical to Uganda’s long-term growth, sustainability, and socio-economic transformation.
