The Uganda Revenue Authority says government of Uganda losses about 1.8 trillion shillings (30 %) of its tax revenues collected annual to smugglers and tax evaders contributing to loss on money that is needed for the country’s economic development

A report released today by the Uganda Revenue Authority indicates that about 1.8 trillion shillings goes missing in the hands of smuggler though Uganda revenue struggles to fight the vice in the importation clearance process.

URA boss Allen Kagina

Although Uganda revenue authority has done a lot in enforcing tax compliance, it appear to be producing good results with increases in revenue collection, but this has not hindered millions of dollars getting lost in the hands of smugglers

The assistant URA James Kasaale says in the past government collected Ush6 trillion which is equivalent to $2.34 billion got from revenue. He says the revenue collected from the smuggled goods increased to 11.1 billion shillings in 2010/2011from Ush9.9 billion shillings in 2009/2010

Kasaale says the government estimates about 30% of total revenue is lost to tax evasion by traders
He further said, in the month of July and June 2011 a total of 46 containers of hides and skins were impounded that contributed to the recovery of about 1.65 billion shillings.

He says they also impounded a total of 30 million cigarette sticks smuggled from the Democratic Republic of Congo and Southern Sudan respectively that contributed to the recovery of 15 billion shillings

By Mugisa Isaac Mathias