THE REPUBLIC OF UGANDA

MINISTERIAL POLICY STATEMENT

VOTE 141
UGANDA REVENUE AUTHORITY
FY 2014/2015
Presented to the Parliament of Uganda

By
Allen Kagina (Mrs.)
COMMISSIONER GENERAL

June 2014
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Table of Contents
Abbreviations and Acronyms .......................................................................................................................... 5
Foreword ............................................................................................................................................................ 6
Vote Overview ................................................................................................................................................... 8
A. Past Performance and Future Plans ................................................................................................. 8
Impact of dropped Policy Measures FY 2013/14 ................................................................................... 11
Expansion of tax base ................................................................................................................................ 12
4.2 Filing Ratios .............................................................................................................................................. 13
Medium Term Plan – Focus for 2014/15 ................................................................................................. 13
Financial Year 2014/15 Planned Outputs ............................................................................................... 14
B. Budget Allocation for FY 2014/15 .................................................................................................... 18
i. Major Expenditure Allocations ......................................................................................................... 18
ii. Capital Investments 2014/15 ........................................................................................................... 18
iii. Costing assumptions for key service delivery outputs ................................................................. 19
C. Key Policy Issues to Address in FY 2014/15 ................................................................................ 19
D. Major Challenges and unfunded Priorities ................................................................................... 20
E. Cross Cutting Issues .......................................................................................................................... 20
F. Conclusion............................................................................................................................................. 21
G. Annexes.................................................................................................................................................. 22
Annex 1: Organization Structure .................................................................................................................. 22
Annex 2: URA Recruitment Plan .................................................................................................................. 23
i. Introduction ............................................................................................................................................. 23
ii. Strategy ................................................................................................................................................... 23
iii. Basis of the Recruitment Plan .............................................................................................................. 23
iii.1 URA Workforce demand forecast for 2014/2015 .......................................................................... 23
a) Staff exits ................................................................................................................................................. 24
b) Unique Business & Market demands .................................................................................................. 24
c) Structural changes ................................................................................................................................. 25
iii.2 Source of recruitment ........................................................................................................................ 25
iii.3 Categorization of the recruitment approaches .............................................................................. 25
iii.4 Description of the Plan ...................................................................................................................... 26
Annex 3: Details of Budget Estimates FY 2014/2015 ............................................................................... 30
Annex 4: Details of unfunded & underfunded priorities 2014/15 (UGX 78.20Billion) ........................... 38
Annex 5: Work Plans for 2014/2015 ............................................................................................................ 40

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 a. Keys focus areas ............................................................................................................................. 40
b. Other focus areas ............................................................................................................................ 42

Table 1: Summary of Policies not approved in FY 2013/14 .................................................10

Table 2: Taxpayer Expansion as at 31st December 2013 ... Error! Bookmark not defined.0
Table 3: Taxpayer Expansion by Tax Head as at 31st December 2013 ..... Error! Bookmark
not defined.
Table 4: Average Filing Ratios for the FY13/114 ................... Error! Bookmark not defined.
Table 5: Projected Turnover Rate by Rank for 2014/2015.................................................242
Table 6: Category and Method of Recruitment ..................................................................264
Table 7: Expected Turnover Due to Retirement Age by Rank ...........................................285
Table 8: The Staffing Gaps as at 31st December 2013 ....... Error! Bookmark not defined.6
Table 9: Approved Staff Establishment ............................... Error! Bookmark not defined.6

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Abbreviations and Acronyms
AC Assistant Commissioner
AEO Authorised Economic Operator
AIDS Acquired immune deficiency syndrome
BPR Business Process Reengineering
CBR Central Bank Rate
CD Customs Department
CG Commissioner General
CGO Commissioner Generals Office
COM Commissioner
CSD Corporate Services Department
DTD Domestic Taxes Department
FY Financial Year
GDP Gross Domestic Product
HIV Human Immunodeficiency Virus
IAC Internal Audit and Compliance
ICT Information Communication Technology
LSBA Legal Services and Board Affairs
MCP Managing Compliance Programme
MTEF Medium Term Expenditure Framework
NSSF National Social Security Fund
NTR Non Tax Revenue
PAYE Pay As You Earn
TID Tax Investigations Department
URA Uganda Revenue Authority
URAnet Uganda Revenue Authority Network
UTL Uganda Telecom Limited
VAT Value Added Tax
WCO World Customs Organization

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Foreword

Madam Speaker,
Honorable Members of Parliament,
In accordance with Section 6 (1) of the Budget Act 2001, I hereby submit the
Ministerial Policy Statement for Uganda Revenue Authority for the Financial
Year (FY) 2014/2015.
This Policy Statement highlights key achievements and challenges faced by the
Authority during the Financial Year 2013/14; it provides the focus for the year
2014/15 and outlines our strategy for the medium term 2011/12 to 2015/16.
During the financial year 2013/14, URA continued with the implementation of its
second reform program, Managing Compliance Program (MCP) a four year
programme in line with its corporate plan 2011- 2015 that focuses on improving
compliance by leveraging technology and professionalism in revenue service.
Madam Speaker, allow me present to you URA’s performance registered during
the FY 2013/14;
Uganda Revenue Authority net revenue collections over the period July 2013 to
March 2014 in FY 2013/14, increased by 13.28% (UGX 683.32Billion)
compared to the similar period of FY2012/13. Revenue collected was UGX
5,827.12Billion as net revenue against a target of UGX 6,158.18Billion,
registering a deficit of UGX 331.07Billion. This was mainly due to the deficit in
domestic taxes of UGX 277.64Billion.
The taxpayer’s register expanded by 53.76% (131,748) during the period July
2013 to March 2014 in FY 2013/14 to 376,815 from 245,067 taxpayers as at
end of FY 2012/13.
URA completed mapping out all business processes for the management of Oil
and Gas revenues as a precursor to the setting up of an Oil and gas division
next financial year.
ASYCUDA World System was rolled out to Malaba, Mbale, Mutukula, Katuna,
Busia, Kampala and Vurra - only for transit declarations.

Ten companies were accredited and issued certificates under the Authorised
Economic Operator programme (AEO). The AEO initiative is intended to
encourage voluntary compliance through facilitating compliant importers and

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exporters of goods. In addition, pre-authorization inspections were carried out
on 12 companies and AEO Preliminary consultation engagements were
completed for 17 companies.

System design documentation for the Electronic Cargo Tracking System

(ECTS) was developed and approved, Completed Geo-mapping of transit
routes, bonded warehouses and border stations, procured ECTS Servers and
installed them in the data centre, procured Electronic seals, installed ECTS
software, and piloted the system in preparation for full implementation next
financial year.

Madam Speaker, all the above are geared towards improving service delivery,
facilitating trade, and improving Taxpayer Compliance expected to result into
improved revenue performance.

During the FY 2014/15, URA is expected to collect net revenue of UGX 9,576.58
Billion. In order to achieve this revenue target, URA has developed initiatives
geared at reaching out to taxpayers through tax awareness programmes,
facilitating trade and make it easy for taxpayers to meet their tax obligations
while at the same time decisively deal with the non-compliant taxpayers.

I am convinced that with stable economic conditions and support from all
stakeholders, URA will be able to deliver on its mandate and ultimately realize
the Vision.

Allen Kagina (Mrs.)

COMMISSIONER GENERAL

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Vote Overview

Through its mandate of facilitating clients to meet their tax obligations, URA’s
contribution to the National budget has steadily increased over the years,
thereby enabling Government to finance its programmes and provide goods and
services that are geared towards improving the quality of life of Ugandans.
Currently, our focus is on improving service delivery by rolling out robust
business processes and systems to encourage voluntary compliance as well as
ensuring that there is smooth movement of legitimate trade in goods and
services into and out of Uganda.
In the FY 2014/15, Uganda Revenue Authority has been appropriated UGX
191.22Billion for its recurrent budget and 39.89Billion for capital expenditure
totaling to UGX 231.11Billion. URA is expected to collect a total net revenue of
UGX 9,576.58Billion during the FY 2014/15.
In order to realize this expectation, emphasis will be placed on implementing
initiatives geared at improving voluntary compliance, increasing the taxpayer
register and increasing enforcement action on non-compliant taxpayers.
Emphasis will also be put on building staff competencies and capacity for the
sustainability of operations and leveraging investment in IT infrastructure.

A. Past Performance and Future Plans

Net revenue collections for the month of March 2014 were UGX 645.39 Bn
against a target of UGX 706.08 Bn, registering a deficit of UGX 60.69 Bn. When
compared to the performance of the month of March 2013, net revenue
collections increased by 13.17% (UGX 75.09 Bn).
On a cumulative basis, net revenue collections for the period July 2013 to March
2014 were UGX 5,827.12 Bn against a target of UGX 6,158.18 Bn, registering
a deficit of UGX 331.07 Bn. When compared to the performance of the same
period last year, net revenue collections increased by 13.28% (UGX 683.32 Bn).

Gross revenue collections for the month of March 2014 were UGX 678.53 Bn
against a target of UGX 747.26Bn, registering a deficit of UGX 68.73 Bn.
However compared to the month of March 2013, there was a growth in revenue
of 14.81% (UGX 87.51 Bn).

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On a cumulative basis, gross revenue collections for the period July 2013 to
March 2014 were UGX 6,087.81Bn against a target of UGX 6,527.18 Bn,
registering a deficit of UGX 439.37Bn. Compared to the period July 2012 to
March 2013, there was a growth in revenue of 13.69% (UGX 732.97Bn).

Domestic taxes’ collections for the month of March 2014 were UGX 361.67 Bn
against a target of UGX 417.33 Bn, registering a deficit of UGX 55.65 Bn. When
compared the performance of the month of March 2013, domestic tax
collections increased by 10.48% (UGX 34.30Bn).
On a cumulative basis, domestic taxes collections for the period July 2013 to
March 2014 were UGX 3,355.63Bn against a target of UGX 3,633.27Bn,
registering a deficit of UGX 277.64 Bn. When compared to the period July 2012
to March 2013, there was a growth in revenue 11.12% (UGX 335.77Bn). The
tax heads that registered surpluses include: PAYE (UGX 45.99 Bn),tax on bank
interest(UGX 31.17Bn) VAT on Electricity (UGX 72.75 Bn) and VAT on
cigarettes (UGX 5.18 Bn), VAT on soft drinks (UGX 1.99 Bn), while the following
tax heads registered deficits; WHT (UGX 53.80 Bn), Corporation tax (UGX
176.28 Bn), Casino tax (UGX 2.42 Bn), Excise duty on mobile money transfers
(UGX. 32.05 Bn) , Excise duty on beer (UGX. 20.01 Bn), VAT on phone talk
time (UGX. 28.49 Bn).VAT on sugar (UGX. 19.87 Bn), and VAT on beer (UGX.
4.11 Bn).
The period July 2013 to March 2014 domestic taxes’ performance of 92.36% is
attributed the implemented projects like TREP that have led to improved
voluntary compliance, arrear payments and Bonus payments. However, this
performance was negatively affected by low profitability in the banking sector,
increased importation in the beer and sugar sector and capital deduction due to
capital investments.
International trade taxes’ collections for the month of March 2014 were UGX
299.60 Bn against a target of UGX 305.60 Bn, registering a deficit of UGX
6.00Bn. When compared to the performance of March 2013, international trade
taxes’ collections increased by 16.13% (UGX 41.62 Bn).
On a cumulative basis, international trade taxes collections for the period July
2013 to March 2014 were UGX 2,614.51 Bn against a target of UGX 2,663.77
Bn, registering a deficit of UGX 49.27 Bn. Compared to the period July 2012 to
March 2013, there was a growth in revenue of 16.14% (UGX 363.38Bn). The
tax heads that registered surpluses include; petroleum duty(UGX 17.65 Bn),
import duty( UGX 51.48) and , VAT on imports (UGX 25.78 Bn) while deficits
were registered on Excise duty on imports (UGX 75.71Bn), Withholding tax on
imports (UGX 68.45 Bn) and Temporary road licences (UGX 6.37 Bn).

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The period July 2013 to March 2014 international trade taxes’ performance of
98.15% is attributed to growth rate of 9.62% in taxable fuel volume. However,
this performance was negatively affected by exchange rate fluctuation which led
to an estimated revenue loss of UGX 103.79 Bn and a decline in excise duty
collections from undenatured alcohol by 57.05% (41.49Bn) compared to period
July to March 2013.
Taxpayer Registration:
Tax payer register as at 31st March 2014 was 376,815 out of which 44,303 are
non-individual and 332,512 are individual tax payers. The taxpayer’s register
has expanded by 53.75% (131,748 taxpayers) within the period July 2013 to
March 2014 from 245,067 as at end of the FY2012/13.
Monthly Filing ratios:
For the period July to March 2014, LTO: average VAT filing ratio was 98% while
average PAYE filing ratio was 96%. MTO: average VAT filing ratio was 94%
while average PAYE filing ratio was 86% and STO: average VAT filing ratio was
77% while average PAYE filing ratio was 66%.
Tax Audit:
For the period July 2013 to March 2014, total domestic tax audits completed
were 1313 cases amounting to UGX 506.93 Bn against a target of 1674 cases
registering a performance rate of 78%.
Arrears Management:
For domestic taxes, the Private arrears position as at end of March 2014
excluding government arrears was UGX 302.05. While Central Government
arrears stood at UGX 404.27 Bn with arrears under the energy sector amounted
to UGX 155.65Bn. Total amount of arrears recovered during the period July to
March 2014 amounted to UGX 151.99Bn.

For the international trade taxes, the outstanding private tax arrears as at the
end of March 2014 was UGX 16.00 Bn, with amount recovered within the period
July to March 2014 amounting to UGX 10.64Bn while outstanding government
customs arrears were UGX 3.87 Bn with amount recovered within the period
July to March 2014 amounting to UGX 12.30Bn
Outlook for Fourth quarter of FY 2013/14:
The net revenue collections target for the fourth quarter FY 2013/14 is UGX
2,376.32 Bn. The cumulative shortfall for the period of July 2013 to March 2014

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is UGX 331.07 Bn effectively implies that the target for each of the remaining
three months must increase by UGX 110.36Bn on average if the annual target
is to be realized.
Impact of dropped Policy Measures FY 2013/14

For the period under review, a total of UGX 32.7Billion has been foregone as a
result of adjustments in policy pronouncements made during the budget speech
of 2013/2014. Some policies were completely dropped while others were
approved three months later into the financial year.
Table 1: Summary of Policies not approved in FY 2013/14
No. Measure Expected Revenue Remarks/Implications
revenue loss (UGX
(UGX Billion)
Billion)

1 Restore excise 15 11.25 For the period July to August 2013, the
duty of 200 measure raised UGX.1.906 Billion. It is
shillings on projected that 3.75Billion was expected
kerosene to be collected over the first quarter.
2 Eliminate VAT 6 5.25 This measure was expected to raise
exemption on UGX 6 Billion for FY 2013/14. It is
hotel estimated that for the period July to
accommodation August 2013, UGX.0.75 Billion was
raised from this measure. Hence, a
revenue loss of UGX 5.25 Billion is
anticipated as a result of forfeiting this
measure for the remaining 10 months of
FY 2013/14.
3 Excise Duty on 8 4.7 Excise Duty on un-denatured spirits was
un-denatured reduced from 140% to 100%.
spirits - UGX
4,000 per litre or
140% whichever
is higher.
4 Rental income 11 11 This was included in the target but was
tax for not adopted
companies
Total 40 32.7

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Tax Administration
Expansion of tax base
Tax payer register as at end of the period July 2013 to March 2014 was at
376,815 out of which 44,303 are non-individual and 332,512 are individual tax
payers with 131,748 new taxpayers added onto the register within the period
(See table 2 and 3).
Table 1: Taxpayer Expansion as at 31st March 2014
Tax Type As at 1st July 2013 As at 31st March 2014 Increase/decrease
Non individuals 37,621 44,303 6,682
Individuals 207,446 332,512 125,066
Total 245,067 376,815 131,748
Source: URA Databases. (eTAX reports as at 8/04/2014)

Table 2: Taxpayer Expansion by Tax Head as at 31st March 2014

Tax Head As at 1st July 2013 As at 31st March Increase/ Decrease
2014
Motor Vehicle 200,850 319,535 118,685
Income Tax 1 152,952 246,841 93,889
Imports and Exports 115,666 169,548 53,886
Stamp Duty 80,674 135,590 54,916
Value Added Tax 14,637 15,661 1,024
PAYE 11,838 13,384 1,546
Withholding Tax 3,918 3,753 (165)
Local Excise Duty 140 154 14
Gaming And Pool Betting Tax 83 83 -
Source: URA Databases (eTAX Reports as at 8/04/2014)
This general expansion of the taxpayer registration for all tax types is influenced
by;
1) Increased registration and sensitization about the requirement of a TIN
through tax hubs, and tax clinics.
2) The TREP project has greatly increased the tax payer register resulting into
the highest number of taxpayers registered for income tax within the month.

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4.2 Filing Ratios

Table 3: Filing Ratios for the period July 2013 to March 2014
Tax Average
Tax Target
payers July Aug Sept Oct Nov Dec Jan Feb Mar Filing
Head (%)
Segment Ratio (%)
PAYE 97 95 94 95 97 96 94 97 94 96 99
LTO VAT 98 99 98 99 99 99 98 99 98 98 99
LED 96 96 100 100 100 100 100 100 96 99 99
PAYE 86 85 84 87 88 88 84 86 86 86 92
MTO VAT 94 94 93 97 96 95 93 93 92 94 92
LED 100 100 100 100 95 100 91 95 95 97 92
PAYE 68 64 67 59 67 79 64 65 64 66 75
STO VAT 80 80 78 68 75 80 78 77 75 77 75
LED 73 74 76 54 71 79 73 72 69 71 75
Source: URA Databases (March 2014 eTAX Reports)

For the period July 2013 to March 2014, LTO’s average VAT filing ratio was
98%, average PAYE filing ratio was 96% and average LED filing ratio was 99%
against their respective targets of 99%. MTO’s average VAT filing ratio was
94%, average PAYE filing ratio was 86% and average LED filing ratio was 97%
against their targets of 92%. While STO’s average VAT filing ratio was 77%,
average PAYE filing ratio was 66% and average LED filing ratio was 71%
against the target of 75 %.( See table 12 above.)

Medium Term Plan – Focus for 2014/15

As we continue implementing the “Managing Compliance Programme” (MCP)

in order to execute the Corporate Strategy, URA will focus on the following:
i. Service Support Enhancement
This initiative seeks to improve the quality of service rendered to our clients and
to ensure business continuity in case of disaster. Under this initiative, our focus
shall be on; creation of a decision support system (Implementation of the Data
warehouse), Culture transformation (Staff behavior & attitude change programs,

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change communication tools, end user capability development), Business
Continuity Management and Business Impact assessment.

ii. Customs Business Systems Enhancement

This initiative is aligned to the regional initiatives of facilitating trade through
improvement in the customs business processes and upgrading the customs
business systems. Under this initiative, our focus shall be on; rolling out of
ASYCUDA World core processes to all Customs stations, implementing the
Electronic Cargo Tracking System (ECTS), establishment of Rapid Response
Units (RRU) for surveillance and monitoring of transit cargo, and implementation
of Customs valuation module.

iii. Integrated Tax Systems

This initiative seeks to enhance and integrate all systems to support the
implemented end to end business processes. The areas of focus for the FY
2014/15 include; Capacity building in Oil & Gas, creating interfaces with e-Tax
and re-orientation / Training of Line Managers.

iv. Infrastructure Development

This initiative will focus on construction supervision for 5 One Stop Border Posts
and commencement of construction of the URA head quarter building.

Financial Year 2014/15 Planned Outputs

By focusing on the following objectives in order to attain a net revenue target of

UGX 9,576.58Billion, URA targets the following outputs:
i. Increase Revenue yield
We expect to achieve a 22% and 18% growth in Domestic taxes and Customs
revenue collection respectively. These will be achieved mainly through; putting
in place a function for international taxation to address transfer pricing,
implementing mobile phone and simplified returns, payment and service
solutions for taxpayers, engaging local authorities and other 3rd parties to
gather information about potential revenue sources and carrying out intelligence
operations, Recovery of taxes from agreed audits and collection of collectable
arrears from audits of previous years, managing the migration of taxpayer
balances into e-Tax, Cleaning the VAT, PAYE and Income tax ledgers and
strengthening revenue collection controls in Customs through implementation

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of risk management, enhancing revenue intelligence, implementation of a
Central Processing Centre for all Customs Clearances, implementation of a
centralized customs electronic valuation database and review of the
management and controls of bonded warehouses.

ii. Increase tax compliance

Through compliance management, URA expects to increase the average filing
ratio from 87% to 88% (LTO 100%, MTO 92% and other stations 75 - looking at
VAT, PAYE and Local Excise duty).
We have planned to implement a joint compliance programme in order to
increase the level of voluntary compliance, 2 new taxpayers accredited, 65%
collectable arrears recovered & 30% reduction in total arrears portfolio, annual
debt stock of private arrears reduced by UGX 50Billion.

To achieve the targets above, we shall conduct 3,375 audits (2,421 desk audits,
828 field issue and 126 comprehensive audits). This will be accomplished by
conducting better quality audits based on e-Tax and third party Information.

We shall strengthen the compliance inspection and audit query management

function, Risk selection profiling, post clearance audits, litigation and debt
collection and continue with the implementation of the AEO program.

iii. Improve Quality of service

Through the quality service enhancement initiative, our target is to attain an 80%
client satisfaction level.

To achieve this, we will provide onsite support to taxpayers at 28 service

centers, carryout 64 Tax Hubs, conduct 103 Primary tax clinics, hold 32 Tax
payer Day Hubs and monthly press conferences.

We shall design sector focused service packages, implement tax education

programmes, conduct industry based familiarization visits, develop and
implement Service enhancement programmes, carry out field visits to remote
areas (areas beyond 50kms from DT Service Centres), establish additional DT
liaison office in Kalisizo and conduct two research surveys in line with the URA
strategic themes.

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 iv. Enhance Relations
In a bid to improve our services and compliance, we shall hold strategic
engagements with three EAC Partner groups (8 EARACG/EARATC/ sub-
committee engagements, 4 EAC engagements on Single customs territory and
3 EAC engagements with the Board).

We shall also participate in three international fora (4 ATAF, 4 ITAS and 4

OECD), engage 4 Government agencies (4 engagements with MDAs, 8
engagements with MoFPED on revenue forecasting, statistical and policy
development Issues, revenue performance review and planning matters), 2
engagements with UBOS on statistical and policy development issues and
planning matters, 2 with OPM/Accountability sector for provision of technical
assistance, 1 with NPA and 1 with BoU.

We shall also hold engagements with development partners to source funds

and technical assistance, hold consultative business fora with CEOs, finance
directors, accountants/ consultants, engage 2 Media groups (Journalists and
Editors) in a bid to improve reporting regarding URA activities and hold at least
one engagement with the Legislature.

When these initiatives are well implemented, we expect 75% of expectations

from Partner interactions met.
v. Increase client Base
In order to increase the client base, we shall optimize the use of 3rd party
information (ASYCUDA, IFMS, e-tax, TID) by identifying and registering all
value clients. We shall also carry out sector based registration, collaborate with
KCCA, Local Governments, URSB and gazetted WHT agents to register the un-
registered suppliers.
When these initiatives are well executed, we expect a 30% growth in the
taxpayer register, 15% growth in value taxpayer register and 1% revenue from
new clients.
vi. Improve Business Process Management
In a bid to further improve our business processes, we shall Implement a
Disaster Recovery plan, Data Warehousing solution, establish a URA Archive,
interface Sun system with e-Tax and design processes to manage mobile
services, specialized return filing, transfer pricing and international taxation and
collaboration between different agencies (KCCA, URSB, and local government).

16
We shall review and restructure a number of departments: TID in order to
strengthen the compliance investigations function; test and implement the re-
designed TID module, rollout the science/forensics support services to other
departments, review the DT structure to cater for Oil and Gas Division,
strengthen controls in the registration process, make preparations for
implementation of EFDs, complete and operationalize the Corporation Tax
model, Customs:- rollout the Single Customs Territory process, complete and
operationalize the Trade Tax model, and; CGO:- conduct an organizational
assessment as a precursor to the development of a new corporate Strategy for
the next five years.
If all these process improvement initiatives are well implemented, we expect to
attain Level 3 Business Process maturity.

vii. Increase Staff Productivity

In order to improve staff productivity, URA will continue to facilitate its staff and
business units with modern tools to enable them execute their roles better. We
shall continue to improve the working environment, conduct work load
assessment and job alignment, implement JSA recommendations and review
the performance evaluation process.

Through this we expect 95% of our staff to meet their performance expectations
and to achieve collection of UGX 3.9Billion revenue per Staff.

viii. Increase staff motivation

In order to improve staff motivation, we shall strengthen the reward and
recognition programs; provide healthcare services and wellness programs to
staff and their families. Our target is to maintain the staff attrition rate at 4% and
attain a staff motivation level of 90%.
ix. Enhance staff competences
In order to improve staff skills, relevant course modules targeting bridging
identified staff competence gaps have been developed for implementation.
New staff will undergo basic tax administration training.
Staff development programme will be implemented phase wise. We will focus
on among others things, implementation of the e-Learning platform.
The capacity building program were designed in accordance with STRAMAL
Model that is premised on three pillars; Strategy, Maintenance and Leadership

17
Strategic trainings will be undertaken to equip staff with specialized skills
needed to execute our strategy, i.e. petroleum and oil revenue management,
Auditing the Telecom sector, e-commerce and transfer pricing.
Maintenance training and sponsorship for professional development programs
that equip staff with best practices in their respective operational areas that
enhance proficiency and business continuity i.e. ACCA, CPA, CIMA, CISCO
etc.
A robust leadership development program was developed and will be
implemented to equip all line managers with leadership skills.
Our target is to have 100% of staff identified, trained as per training planner
and this requires committing 3% of the total re-current budget.

B. Budget Allocation for FY 2014/15

The budget allocation for the FY 2014/15 is UGX 232.222Billion out of which
UGX 191.22Billion is for recurrent expenditure and UGX 37.40Billion for capital
and strategic expenditure. Capital expenditure budget includes UGX 20Billion
to start construction of URA Headquarter building and UGX 3.59Billion external
financing towards development of decision support solutions.
Other budgetary considerations maintained because of the various business
and operational needs are: Training: a total of UGX 2.8Billion has been
provided. Enhancement of office security UGX 1.3Billion, Tax Investigations
Laboratory Equipment UGX 580Million, maintenance of the e-tax licences UGX
2.7Billion, Legal Fees & Expenses UGX 1.3Billion, URANET contracts (UTL &
ORANGE) UGX 5.9 billion.

i. Major Expenditure Allocations

The Major expenditure allocation is staff costs (59.3%) and include;
Consolidated Pay, Hardship allowance, Employers' Contribution to NSSF,
Medical Allowance, Employer's Contribution to RBS and Gratuity.
The cost driver for staff costs is the approved staff establishment of 2,394 staff.
ii. Capital Investments 2014/15
In the FY 2014/15, UGX 20 Billion has been allocated to construction the URA
Headquarters building, UGX 5.5Billion to the Managing Compliance Program
(MCP), UGX 9.4Billion to Disaster Recovery (DR) system, UGX 3.0 Billion to
finance the motor vehicle lease, and UGX 3.59Billion (from KfW and DFID)
External financing towards the Data warehouse and Oil & gas sub projects.

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iii. Costing assumptions for key service delivery outputs
The following are the costing assumptions: -
 Staff establishment will be 2,394
 The staff structure will remain the same through the FY
 The scope of the initiatives/projects will not vary from what is planned
 Prices will remain stable or fluctuate within manageable limits
 All activities and the required inputs were identified and costed.

C. Key Policy Issues to Address in FY 2014/15

Next financial year is the fourth year of Implementation of our Strategic Plan
based on the Balanced Scorecard framework. Our Business Plan outlines the
initiatives and detailed activities that will be carried out in the FY 2014/15 in
order to realize the planned outputs. The summary indicated in this document
is an extract from the business plan for FY 2014/15.
Given the changing operational environment, we shall continue monitoring and
reviewing our performance to ensure that our outputs meet stakeholder
expectations.
I'm convinced that if these initiatives are well implemented we shall be able to
achieve our targets.
The broad programme we are implementing in the medium term - Managing
Compliance Programme (MCP) has been allocated UGX 5.5Billion in FY
2014/15, while development partners have also committed UGX 3.59Billion.
Madam Speaker, the following are the initiatives to be implemented;
i. Implement a data warehouse solution to provide information that will
enhance decision making and reduce leakages
ii. Roll out of ASYCUDA World core processes to all Customs stations
iii. Implement the Electronic Cargo Tracking System
iv. Establish Rapid Response Units for surveillance and monitoring of
transit cargo
v. Implementation of Customs valuation module.
vi. Carry out capacity building in Oil & Gas
vii. Create Interfaces with e-tax.
viii. Commencement of construction of URA head quarter building
ix. Construction supervision for 5 One Stop Border Posts

19
D. Major Challenges and unfunded Priorities

Madam Speaker, despite increased funding from Government as per the MTEF
allocation, URA still faces a number of challenges, that include among others;
growing operational costs as business expands, poor working environment
especially at the boarder stations, growing NSSF arrears and increasing
Stakeholders expectations.
Therefore a number of priorities that are critical to our efficient and effective
operation have remained un-funded or underfunded.
In the FY 2014/15, the unfunded and underfunded priorities total to UGX
78.20Billion and these include:
i. UGX 28.0Billion for construction of URA Headquarter building
ii. UGX 1.869Billion to cater for contingency costs on oil cases and;
In addition to the above, UGX 36.74Billion for the implementation of the Single
Customs Territory remains unfunded. These resources are needed to set up 5
offices in Kenya and Tanzania; Mombasa UGX 7.90Billion, Nairobi UGX
8.50Billion, Nakuru UGX 6.32Billion, Eldoret UGX 6.32Billion, Kisumu UGX
6.32Billion and Dar-es-Salam UGX 9.875Billion.

E. Cross Cutting Issues

i. Gender and Equity

There is no gender discrimination in URA. Staff are recruited based
competence. No person therefore in the organization is excluded on the basis
of Sex. 61.8% of the employees are males and 38.2% are females.
ii. HIV/AIDS

We shall continue with the implementation of the HIV/AIDS policy.

In the FY 2014/15, 60 families are planned to receive medication and care from
Mildmay Centre and implementation of the policy is projected to cost UGX 300
million.
iii. Environment
Under the 'Go Green project', we shall continue positioning ourselves as a
socially responsible organization that makes environmentally mindful decisions.

20
Through the project, we strive to reduce the negative impact of our business on
the environment where we operate from.
In the next financial year, we will continue with sensitization of our staff on issues
of preserving the environment.

F. Conclusion

Madam Speaker, The net revenue target for the FY 2014/15 (UGX 9,576.58
Billion) is high. However, the initiatives we have put in place are robust and we
hope they will enable us generate more revenue to be able to meet this target.
The operational departments will strengthen their efforts in areas of international
taxation, use of eTax and third party information, taxpayer registration,
compliance audits, collection controls, debt recovery, litigation, investigations
and enforcement operations.
Roll out of ASYCUDA World core processes to all Customs stations,
implementation of Electronic Cargo Tracking System and implementation of
Customs valuation module will be key in improving the quality of services and
Taxpayer compliance. Taxpayer sensitization through tax clinics and hubs and
improving business processes will also be key priorities.

However, attaining all the planned outputs requires additional financing to cater
for the under-funded and un-funded priorities.

21
 G. Annexes

Annex 1: Organization Structure

22
 Annex 2: URA Recruitment Plan

i. Introduction
In a bid to Support URA Operations the recruitment plan sets out a clear direction for human
resource needs across URA to ensure that the organizations’ vision and mission are
translated into real change, by providing the required skills and competencies in the various
positions in the organization. Uganda Revenue Authority is committed to attracting,
developing and retaining talent with the right competence-mix that will foster organizational
performance and posterity. Our goal as an Employer of Choice is to become an organization
that develops and fully optimizes the productivity and professionalism of our Human
Resource.

ii. Strategy
The Recruitment strategy is geared towards providing real-time and long term manpower
solutions to support the organization achieve business success through recruiting key talent
in the organization. Our Recruitment process is designed to ensure that we source and recruit
the best talent available on the market and therefore goes as follows:

a. Announcement of vacant positions in the media and URA Websites

b. Short listing based on the weighted scores
c. Publishing of the shortlist
d. Assessment of candidates
e. Vetting & Back ground checks of candidates
f. Publication of successful applicants

iii. Basis of the Recruitment Plan

iii.1 URA Workforce demand forecast for 2014/2015

In order to maintain the state of equilibrium of the URA workforce plans; Strategies are drawn
in close comparison with the URA workforce demand forecasts. The following factors form
the basis of the man power forecast;

23
 a) Staff exits
Table 5: Projected Turnover Rate by Rank for 2014/2015
Turn Over by Financial year

2013-14 Projected turnover for 2014/15

RANK 2010-11 2011-12 2012-13
based on the three year average

CG 0 0 0 0 0

COM 2 0 2 0 1
AC 12 0 0 2 4
MANAGERS 4 9 7 3 7
SUPERVISORS 12 36 20 12 23
OFFICER1 101 107 75 42 94
SUPPORT 2 6 3 12 4
STAFF
TOTAL 133 158 107 71 133

Note: The projections in Table 5 may be subject to ±10% given the on-going staff engagement
schemes.

b) Unique Business & Market demands

The unique business demands may arise out of the changing business environment. When
this happens it creates situations that make it necessary to address urgent staffing needs.
Sometimes clients seek customised solutions unique to their evolving business needs. To
meet these needs, the recruitment team has to provide manpower solutions and sometimes
source for special talent and expertise that can conceptualize, design and develop custom-
built solutions.

The Authority has for example recently adjusted her approaches of recruitment to include in
the social media and on line recruitment. This is in a bid to attract a large of pool of young
and energetic manpower that is on the market.

Due to the ever changing economic trends; the revenue target has constantly been growing
to a sagging UGX 9,981.7Billion as the Authority’s target in FY 2014/2015. This implies that
the recruitment has to provide steadfast and hands on solutions that relate to staffing needs
of the Organisation.

24
 c) Structural changes
URA Intends to undertake structural reviews in following departments in 2014/2015.These
include;

a) Customs Department
b) Corporate Services Department under IT and Administration divisions
c) Domestic Taxes Department under Natural Resources Section.
Management intends to implement structural recommendations which have no budgetary
implications like the change in skills sets in 2013/2014.Those with major financial implications
will be implemented in 2014/2015.

iii.2 Source of recruitment

According to the HRMM section 2.1; Positions in the Authority are filled transparently and on
merit using open competition as the basis of selection.
There are two sources from which suitable candidates can be selected. These include;
i. Internal Recruitment
ii. External Recruitment
URA is an equal opportunities employer and recruits its talent through a rigorous and
equitable process guided by the following Principles:

Open Competition (Advertisements in the media and URA web portal), Equity, Probity,
Meritocracy, Transparency and Excellence.

iii.3 Categorization of the recruitment approaches

a) Board Appointees
b) Management Appointments
c) Secondments
d) Graduate Trainees
e) Experiential Hiring

25
 iii.4 Description of the Plan

The Table below describes the category and method of recruitment to be undertaken.
Table 6: Category and Method of Recruitment
Source of Categorization Description Methodology Number of Time
Recruitment Projected Frame
Vacancies
INTERNAL Board The Board Appointees Internal 2 Assistant September
RECRUITMENT Appointees include staff at the Rank of Commissioner’s ( 1 2014
Commissioner General, On Line contract expires in
Commissioners, September 2014
Recruitment
and another to fill in
Assistant Commissioners the position of
and Managers Assistant
Commissioner in the
Oils division in DT)

NB. Forecast based

on End of Contract

6 Managers others
based on
projections

Management These Include; Internal 20 Supervisors July 2014–

Appointments June 2015
Supervisors,Officers1, On Line Based on
Officer 11 and Support Staff projections
Recruitment

EXTERNAL Where no qualified External On

RECRUITMENT candidate is identified
internally, URA advertises Line
the vacant position
Recruitment
externally for thirty calendar
days.

It is aimed at bringing in a
new breed of professionals
;This is done in 2 ways;
Experiential Hiring
&Graduate Trainee
Program
Source of Categorization Description Methodology Number of Time
Recruitment Projected Frame
Vacancies
EXPERIENTIAL This applies to particular External On 25+46 (As a result July 2014
HIRING positions in the Authority of the creation of the
such as; Line Oil division in
Domestic Taxes)
All Board Appointed Recruitment June 2015
Positions

Expatriates in the
Departments and Divisions
such as IT, Finance and
LSBA Division. The aim of
experiential hiring is to
attract qualified persons with
the requisite experience and
where proficiency is
significantly gained on the
job

GRADUATE URA embraced the URA External On 100 August

TRAINEE Graduate Trainee Line 2014
PROGRAM recruitment aimed at
enabling the organisation to Recruitment
These will be based
source, train, and retain the
on projected
scarce and specialized
turnover in the
competencies in the market
respective
that are critical for the
departments
resilience and posterity of
the Organization.

In URA we ‘grow our own

timber’ and with the URA
graduate Trainee Program

We are looking at fresh

graduates we can model
and train the values and
culture of the institution to
deliver excellence.

27
Source of Categorization Description Methodology Number of Time
Recruitment Projected Frame
Vacancies
SECONDMENTS The Commissioner General Secondment 23 seconded staff July 2014
may from time to time
appoint staff with specialist Arrangements Normally these are
skills and competencies on from UPDF
Secondment as may be &Uganda Police and
needed by the Authority. that is per the
approved structure
Currently URA gets
seconded staff from Uganda
Police and UPDF to support
certain critical operations on
a contract basis.

Table 7: Expected Turnover due to Retirement age by Rank-2014/2015

RANK PROJECTED NUMBERS

COMMISSIONER GENERAL 0

COMMISSIONERS 0

ASSISTANT COMMISSIONERS 0

MANAGERS 1

SUPERVISORS 1

OFFICERS 16

SUPPORT STAFF 10

TOTAL 28

Table 8: The Staffing Gaps as at 31st December 2013

RANK APPROVED FILLED VACANCIES

CG 1 1 0

COM 6 6 0

AC 21 20 1

MANAGERS 80 79 1

SUPERVISORS 253 241 12

28
 OFFICER1 1731 1629 102

SUPPORT STAFF 302 285 17

TOTAL 2394 2261 113

Table 9: Approved Staff Establishment

DEPT CG COM AC MGR SPR OFF SS Approved

CGO 1 0 3 13 25 47 12 101

CSD 0 1 4 16 43 163 65 292

CD 0 1 5 12 42 691 83 834

DTD 0 1 5 24 102 741 112 985

IAC 0 1 1 5 17 30 6 60

TID 0 1 1 5 15 39 9 70

LSBA 0 1 2 5 9 27 8 52

TOTAL 1 6 21 80 253 1,738 295 2,394

29
Annex 3: Details of Budget Estimates FY 2014/2015

VOTE DESCRIPTION CG TID CSD CUE DT IAC LSBA TOTAL

A STAFF COSTS

401001 Consolidated Pay 6,009,759,657 3,672,653,080 13,851,107,062 35,219,452,686 42,189,685,239 3,329,873,507 2,859,468,769 107,132,000,000

401003 Hardship Allowance 12,600,000 26,640,000 830,760,000 107,280,000 977,280,000

401004 Workmen's Compensation 90,146,395 55,089,796 207,766,606 528,291,790 640,615,279 49,948,103 42,892,032 1,614,750,000

401005 Social Security Contribtn 632,952,082 382,756,230 2,494,307,912 3,635,098,168 4,311,472,062 346,785,405 299,521,150 12,102,893,009

401007 Death Benefits (Group Life Assurance) 348,201,638 348,201,638

401008 Gratuity 297,006,648 148,553,246 839,446,357 239,521,363 239,521,363 122,841,163 131,685,523 2,018,575,663

401010 Long Service Award 1,378,584,608 1,378,584,608

401011 Medical Allowance 141,400,000 98,000,000 958,800,000 1,167,600,000 1,379,000,000 84,000,000 72,800,000 3,901,600,000

401013 Responsibility Allowance 10,547,201 7,309,942 30,492,899 87,092,732 102,861,320 6,265,664 5,430,242 250,000,000

401014 Special Allowance 10,154,516 6,355,975 225,885,700 61,247,630 60,234,015 15,139,382 4,057,205 383,074,423

401015 Retirement Benefit Scheme-RBS 360,585,579 220,359,185 831,066,424 2,113,167,161 2,562,461,114 199,792,410 171,568,126 6,459,000,000

30
401018 Commuted Leave Pay 1,200,000,000 1,200,000,000

TOTAL FOR STAFF COSTS 7,565,152,079 4,591,077,453 22,392,299,206 43,882,231,530 51,593,130,392 4,154,645,634 3,587,423,047 137,765,959,341

B TRANSPORT COST

402001 Mileage Allowance 300,000 3,730,000 3,500,000 2,100,000 9,630,000

402002 Public Transport 7,500,000 4,600,000 50,703,200 49,000,000 30,280,000 4,000,000 1,200,000 147,283,200

402003 Night/Subsistence Allow. 68,420,000 51,100,000 450,571,490 110,000,000 302,707,640 70,483,870 63,890,000 1,117,173,000

402004 Car Washing/Parking Fees 33,600,000 4,514,400 18,000,000 35,701,200 33,595,200 3,390,000 3,637,200 132,438,000

402005 Petrol and Diesel 184,926,000 116,347,200 575,656,000 910,895,200 700,262,800 132,651,200 103,107,600 2,723,846,000

402007 Tyres and Tubes 4,500,000 4,992,000 165,036,000 11,364,000 6,216,000 4,992,000 2,900,000 200,000,000

402008 Repairs-Motor Vehicles 74,226,000 34,763,760 213,559,596 404,659,416 282,795,600 36,148,800 35,868,000 1,082,021,172

402009 Overhauls-Motor Vehicles 55,000,000 55,000,000

402011 Insurance-Motor Vehicles 17,266,153 17,266,153 73,997,799 160,328,564 160,328,564 14,799,560 17,266,153 461,252,946

402012 Hire of Vehicles 6,813,000 34,064,000 6,813,000 1,110,000 1,200,000 50,000,000

402013 Hire of Boats - 73,700,000 73,700,000

31
402014 Transfer Expenses 35,000,000 218,000,000 98,735,992 351,735,992

402015 Other Travelling Expenses 2,078,000 3,600,000 37,548,260 27,947,658 15,000,000 9,000,000 9,000,000 104,173,918

402016 Overseas Air/Sea Fares 100,000,000 14,257,560 23,194,000 22,500,000 25,000,000 30,098,753 64,728,811 279,779,124

402017 Overseas Subsistence All. 76,465,370 35,290,500 89,077,300 37,902,200 73,165,950 33,070,712 30,620,799 375,592,831

402018 Overseas Outfit Allowance 4,000,000 1,000,000 2,000,000 2,000,000 2,000,000 1,080,000 2,614,529 14,694,529

402023 Earatc - Travel 102,247,746 102,247,746

402024 Earatc - Subsistence 187,895,670 187,895,670

402025 Eac/Comesa - Travel 51,861,890 51,861,890

402026 Eac/Comesa Subsistence 135,698,645 135,698,645

TOTAL FOR TRANSPORT COSTS 863,124,939 294,844,573 1,827,137,645 2,261,871,773 1,730,087,746 342,924,895 336,033,092 7,656,024,663

C MAINTENANCE COSTS

403001 Maint.-Office Buildings 500,000,000 500,000,000

403002 Upkeep of Grounds&Gardens 50,000,000 50,000,000

403003 Maint.-Office Furniture 50,000,000 50,000,000

32
403004 Maint.-Office Equipment 580,000,000 314,515,916 894,515,916

403005 Maint.-Computer Equipment 5,500,000,000 2,700,000,000 8,200,000,000

403006 Parking Yards and Roads 20,000,000 20,000,000

403007 Processing Land Titles 30,000,000 30,000,000

403008 Maint.-Plant & Generator 975,600,000 975,600,000

TOTAL FOR MAINTENANCE COSTS - 580,000,000 7,440,115,916 - 2,700,000,000 - - 10,720,115,916

D OTHER CHARGES

404001 Postal CHarges 144,000,000 144,000,000

404002 Telecom Charges 570,000,000 570,000,000

404003 Electricity CHarges - 22,000,000 627,000,000 220,000,000 231,000,000 - - 1,100,000,000

404004 Water Charges-utility - 4,000,000 25,920,000 32,000,000 32,000,000 24,000,000 - 117,920,000

404004 Water charges-drinking water 3,000,000 3,500,000 15,000,000 25,000,000 30,000,000 3,000,000 2,000,000 81,500,000

404005 Rates On Properties 200,000,000 200,000,000

404006 Office Cleaning Expenses 1,059,600 3,262,596 202,233,600 165,767,592 69,000,000 739,200 1,527,600 443,590,188

33
404007 Office Tea Expenses 8,728,800 9,505,200 50,826,000 142,811,520 143,267,400 6,193,200 5,461,200 366,793,320

404008 Office Accommodation Exp 427,757,724 625,203,000 286,344,000 1,596,445,787 1,267,673,472 4,203,423,983

404009 Staff Recruitment Costs 130,000,000 130,000,000

404010 Printing and Stationery 42,850,000 32,200,000 417,750,265 360,760,000 592,578,000 30,360,735 41,992,000 1,518,491,000

404011 General Insurance 165,495,748 165,495,748

404012 Office Removals 26,000,000 33,000,000 59,000,000

404013 Departmental Training 2,800,000,000 - 2,800,000,000

404014 Library and Periodicals 7,000,000 4,500,000 32,000,000 5,936,800 25,782,750 6,000,000 2,972,292 84,191,842

404015 Bank CHarges 3,360,000 2,000,000 55,644,495 25,000,000 29,700,411 1,800,000 1,400,000 118,904,906

404016 Welfare Services 200,000,000 200,000,000

404017 Legal Fees and Expenses 1,350,634,256 1,350,634,256

404018 Professional Fees 206,800,000 70,000,000 16,000,000 292,800,000

404019 Departmental Meetings 88,377,000 31,000,000 102,000,000 52,360,000 98,750,000 255,642,297 31,000,000 659,129,297

404020 Public Relations/Publicity 418,000,000 12,300,000 506,600,000 78,000,000 340,680,000 29,100,000 1,384,680,000

34
404021 Fieldwork/Lunch Expenses 183,820,000 127,400,000 1,052,940,000 1,517,880,000 1,792,700,000 109,200,000 94,640,000 4,878,580,000

404022 Entertainment & Ceremonies 40,000,000 5,000,000 255,000,000 5,000,000 5,000,000 5,000,000 5,000,000 320,000,000

404025 Clothing and Uniforms 420,000,000 420,000,000

404026 Office Security Expenses - - 876,320,000 181,678,800 341,515,781 - - 1,399,514,581

404027 Revenue Stationery 34,175,295 201,071,456 235,246,751

404028 Contributions/Subscriptions 45,000,000 20,000,000 50,000,000 65,341,965 20,000,000 3,000,000 203,341,965

404029 CASual Labourer's Costs 3,500,000 4,000,000 41,278,000 9,000,000 2,300,000 60,078,000

404030 Intelligence Fund 102,500,000 74,923,701 2,000,000 179,423,701

404032 Sports and Games 600,000,000 600,000,000

404033 Destruction: Expired Item 50,000,000 31,494,398 81,494,398

404034 Uranet Recurrent Costs 5,901,924,590 5,901,924,590

404035 Earatc Local Expenses 34,557,600 - 34,557,600

404037 Tax Payer Education 900,000,000 - 900,000,000

404043 Tax Payers Appreciation Day 200,000,000 - 200,000,000

35
404045 Counterpart Funding Expenses 299,005,543 299,005,543

404046 Staff Council Activities 40,000,000 40,000,000

404048 Innovations Awards 79,811,000 79,811,000

404049 Balance Score Card 89,367,411 89,367,411

404061 DR Solution 3,000,000,000 3,000,000,000

TOTAL FOR OTHER CHARGES 3,387,625,954 790,925,520 18,419,746,698 3,289,132,106 5,638,833,549 563,335,432 2,823,300,820 34,912,900,079

E BOARD EXPENSES

405001 Retainer Fees 50,000,000 50,000,000

405002 Sitting Allowance 42,000,000 42,000,000

405007 Other Board Expenses 75,000,000 75,000,000

TOTAL FOR BOARD EXPENSES 167,000,000 167,000,000

TOTAL RECURRENT EXPENDITURE 11,815,902,972 6,256,847,546 50,079,299,464 49,433,235,409 61,662,051,688 5,060,905,961 6,913,756,959 191,222,000,000

Capital Expenditure & External Financing

404057 Strategic Development (MCP) 2,428,310,258 2,428,310,258

36
404057 SSEP Data WareHouse 2,000,000,000 2,000,000,000

404057 IDEP Project 527,000,000 527,000,000

101001 URA HQ Building 20,000,000,000 20,000,000,000

101003 Vehicles(Finance lease) 3,000,000,000 3,000,000,000

101009 DR System 9,444,689,742 9,444,689,742

101010 External Financing (KFW-GER) 2,920,000,000 2,920,000,000

101010 External Financing (DFID) 680,000,000 680,000,000

TOTAL RECURRENT, CAPITAL & EXT FIN 19,844,213,230 6,256,847,546 83,050,989,206 49,433,235,409 61,662,051,688 5,060,905,961 6,913,756,959 232,222,000,000

37
Annex 4: Details of unfunded & underfunded priorities 2014/15 (UGX 78.20Billion)

Details of unfunded & Amount Impact of not financing

underfunded priorities (UGX
Billion)
Contingency costs on 1.869 If no resources are put aside for oil cases as they arise, the cases could be lost and repercussions
1
oil cases could be very costly.
Implementation of the 36.735 This may delay the implementation of the Presidential Directive on Single Customs Territory.
Single Customs These resources are needed to set up 5 offices in Kenya and Tanzania.
Territory  Mombasa UGX 7.90Billion
 Nairobi UGX 8.50Billion
2  Nakuru UGX 6.32Billion
 Eldoret UGX 6.32Billion
 Kisumu UGX 6.32Billion
 Dar-es-Salam UGX 9.87Billion

Implementation of 1.10 Without licenses, there may be a delay in the implementation of the Electronic Cargo Tracking
Electronic Cargo System.
Tracking System(ECTS);
annual licenses fees of
3
US$ 416,000 i.e.,
approx. UGX 1.1 billion
shillings

Establishment of Rapid 2.00 This may impede the implementation of the Electronic Cargo Tracking System
Response units for
surveillance and
4 monitoring of transit
cargo, i.e., UGX 2 billion
shillings

38
 Details of unfunded & Amount Impact of not financing
underfunded priorities (UGX
Billion)
TOTAL UNFUNDED 38.604

Details of underfunded Amount Impact of not financing

(UGX
Billion)
3 Commencement of 28.00 1. Delay in completing the project leading to increased project costs
construction of URA 2. Increased operational cost in terms of rent and system connectivity
Headquarter building 3. Increased cost of compliance on the part of our Clients
4. Quality of Service may be compromised
TOTAL UNFUNDED and 78.20
UNDERFUNDED

39
Annex 5: Work Plans for 2014/2015
a. Keys focus areas

Strategic Focus for 2014/2015 Expected output

Objective

Increase 1. Engage local authorities and other 3rd parties to gather information about potential revenue 22% Growth in DT
Revenue yield sources and carry out intelligence operations Revenue Collections
2. Audit Recovery of current FY, agreed audits and uncollected collectable arrears from audits
of previous years
3. Recover Collectible Arrears
4. Manage the Migration of taxpayer balances into e-TAX
5. Clean the VAT, PAYE and Income tax ledgers

Revenue collection controls 18% increase in

Customs Revenue
1. Implement risk management in customs Collection
2. Enhance revenue intelligence
3. Implement a Central Processing Centre for all Customs Clearances
4. Implement a centralized customs electronic valuation database
5. Conduct monthly reviews of revenue collection controls
6. Carry out real time data matching and analysis
7. Review the management and controls of bonded warehouses
Increase tax Implement the national audit plan: Audit recovery of
compliance current year audits
Conduct 3,375 broken down as follows: 2,421 desk audits, 828 field issue and 126
comprehensive audits This will be accomplished by conducting better quality audits based on e-
as follows: LTO-
Tax Information. 30%, MTO-40%
and STO-50%

1. Implement and enforce adherence to set audit standards 88% average filing
2. Identify and audit taxpayers causing a huge vat gap by way of offsets ratio
3. Implement risk management in domestic taxes
4. Operationalize Oil and Gas division
5. Improve compliance of the construction sector
2 taxpayers
6. Implement joint audits (regional and local)
accredited
7. Minimize the impact of treaty shopping

40
 Strategic Focus for 2014/2015 Expected output
Objective

8. Implement monitoring of newly registered clients compliance program (Carry out post
registration verification visits)
9. Improve compliance monitoring for income tax
10. Implement Compliance Inspection and Audit Query Management initiatives
11. Enhance Risk Selectivity Profiling
12. Strengthen Post Clearance Audits: conduct 200 comprehensive audits and 20 oil issue audits
13. Roll out the Authorized Economic Operator (AEO) program: Monitor the implementation of
the AEO program at National and Regional Level and Implement AEO program in Bonded
warehouses
14. Rollout the implementation of the piloted components of the AEO program and monitor the
performance of accredited clients and generate quarterly reports
15. Implement risk management in Customs enforcement activities
160
16. Roll out ASYCUDA World to all customs business areas. comprehensive
audits and 40 oil
issue audits
completed

Strengthen litigation and debt collection 65% collectable

arrears recovered &
1. Represent URA in Courts of law/tribunals 30% reduction in
2. Carry out station visits for reconciliation and enforcement of debt payment total arrears portfolio

Annual debt stock of

private arrears
reduced by 50Billion

Improve Quality Taxpayer Service 80% client

of service satisfaction level.
1. Decentralize revenue services
2. Design sector focused service packages 1. 64 tax Hubs
3. Implement tax education programmes 2. 103 Primary
4. Conduct industry based familiarization visits. tax clinics
5. Develop and implement Service enhancement Programmes 3. 32 Tax payer
6. Hold Exhibitions (ULGA, PSFU, UMA, Buganda Day Hubs
41
 Strategic Focus for 2014/2015 Expected output
Objective

Land Board, SME, NCHE) and 25 Tax literature/ material issued. 4. 7 Exhibitions
7. Carry out field visits to remote areas and areas beyond 50kms from the nearest DT Service 5. Provide onsite
Centre support to 28
8. Establish additional DT liaison office in Kalisizo service centers
9. Conduct two research surveys in line with the URA strategic themes
10. Run theme based media campaigns on newspaper strips, websites and billboards
11. Carry out; 73 tax clinics/hubs, 92 radio/TV shows

Increase client Expansion of Taxpayer register 30 % increase in tax

Base payer register
1. Optimize the use of 3rd party information:
Identification and registration of value clients based on third party information(ASYCUDA,
IFMS, e-TAX, TID)
2. Carry out sector based registration
3. Collaboration with KCCA, Local Governments & URSB
4. Collaborate with the gazetted WHT agents to register their unregistered suppliers

b. Other focus areas

Strategic Focus for 2014/2015 Expected output

Objective
Optimize Implement Activity Based Costing & Budgeting (ABB) Revenue
resource administration cost
utilization i. Carry out quarterly budget performance reviews maintained at 2.3%
ii. Prepare and align departmental work plan to the budget.
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 Strategic Focus for 2014/2015 Expected output
Objective
Enhance Implement Partner engagement programme: 75% of expectations
Relations from Partner
1. Engagements with 3 EAC Partner groups interactions met.
i. 8 EARACG/EARATC/Sub-Committee Engagements for East African Region
55 strategic
ii. 4 EAC Engagements on Single Customs Territory
iii. 3 EAC Engagements with the Board engagements
conducted.
2. Engagements with/Participation in 3 International Partners/Forums

i. 4 ATAF engagements
ii. 4 ITAS engagements
iii. 4 OECD engagements

3. Engagements with 4 Government agencies

i. 4 Engagements with Ministries Departments and other Government Agencies

ii. MOFPED: 1 on Revenue Forecasting, 2 on Statistical and Policy Development Issues,
4 on Revenue performance review and 1 on Planning matters
iii. UBOS: 2 on Statistical and Policy development issues, 1 on Planning matters
iv. 2 with OPM/Accountability sector for provision of technical assistance
v. 1 with National Planning Authority
vi. 1 with Bank of Uganda
4. Engagement with Development Partners

i. 2 Engagements with Development Partners to source support in terms of funds and

Technical Assistance.

5. Engagements with 3 Business groups

i. Hold Consultative Business Forums with CEOs, Finance Directors, Accountants/

Consultants

6. Engagements with 2 Media groups

i. Journalists trainings and meet to further improve URA image

ii. 2 Editors' engagements to ensure accurate reporting regarding URA activities

7. Engagement with the Legislature

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 Strategic Focus for 2014/2015 Expected output
Objective
i. Hold 1 Engagement with MPs (Selected committees)

8. Monitor performance of existing MoUs

Increase Implement communication enhancement programme: 100% of

Communication Communication
1. 4 Feedback engagements enhancement
interventions
i. 2 M&E workshops
ii. 4 MEC Engagements on M&E implemented.
iii. Departmental meetings
iv. Divisional meetings

2. 2 Display Communications

i. Corporate Strategy Map

ii. GO- GREEN Communications
iii. Tax Payer Charter

3. 11 publications

i. 3 Issues of Taxman magazines

ii. Taxation Handbook
iii. Risk Management Policy and Guidelines
iv. Risk Management Policy and Guidelines
v. Annual Data Book
vi. Research Bulletin
vii. Annual Revenue Bulletin for 2013/14
viii. MCP Bi-annual Publication
ix. Magazine on Donor Support to URA Reform Initiatives since 2005
x. Business Process Management (BPM) Framework
xi. Produce the URA Business Plan, Budget Framework Paper and Ministerial Policy
Statement

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 Strategic Focus for 2014/2015 Expected output
Objective
4. 6 Media Communications

i. Broadcast shows
ii. Generate media stories
iii. Education strips in the media and websites
iv. Publish 3 Newspaper supplements (advertorials)
v. Monthly Newspaper interviews
vi. Daily press scans from Ipsos to staff by 9am
vii. 11 Press briefs and Field Tours to Government Funded Projects and Taxpayers (6-
Central, 5 Regional)
viii. Media tours to enable journalists appreciate what happens in other URA Stations

5. 4 Virtual & e-Communications

i. Monthly Facebook updates (Press Briefs)

ii. Website updates (CGO Publications)
iii. Intranet updates (CGO Publications, Strategic documents)
iv. CG's Communication to all Staff

6. 4 Show case & visibility events

i. Tax Payers Appreciation Day

ii. Open Minds Forum
iii. URA kids League
iv. Corporate League
v. URA FC Leagues/Matches

Improve i. Develop and implement business process improvement programme: Achieve Level 2
Business ii. Implement Risk Management and Business Continuity Plan (Disaster Recovery plan) Business Process
Process iii. Implement Data management programmes (Data Warehousing solution) maturity.
iv. Establish a URA Archive
Management
v. Develop Sun system interface with e-tax 100% planned
vi. Design processes to manage mobile service
business process
vii. Design processes for specialized return filing
viii. Design processes for collaboration between different agencies namely KCCA, URSB, improvement
and local government programmes
ix. Design processes to for transfer pricing and international taxation undertaken
x. Review DT structure to cater for Oil and Gas Division

45
 Strategic Focus for 2014/2015 Expected output
Objective
xi. Strengthen controls in the registration process
xii. Make preparations for implementation of EFDs
xiii. Test and implement the re-designed TID module
xiv. Engineer the Single Customs Territory Process
xv. Re engineer customs business processes
xvi. Roll out the science/forensics support services to other departments
xvii. Complete and Operationalize the Trade Tax model
xviii. Complete and Operationalize the Corporation Tax model
xix. Conduct an environmental scan to prepare for the development of the next corporate
plan
xx. Organize clearing house – planning and budgeting engagement
xxi. Organize strategy review conference

Increase i. Develop and implement Knowledge management programme 100% Planned

Knowledge ii. Develop and Implement knowledge management frame work knowledge
Management management
programmes
implemented

Increase Staff 1. Develop and implement staff productivity improvement programmes. UGX 3.9Billion
Productivity Revenue per Staff
i. Conduct performance management reviews, Prepare and submit results
ii. Conduct staff recruitment and talent sourcing (Advertising, assessment centres and
psycho metric tests
iii. Conduct workload assessment and Job alignment and Implement JSA
recommendations

2. Implement employee wellness programmes

95% of staff meeting
i. Implement staff psycho social support activities (Bereavement, Aerobics, staff council
performance
activities, Counseling, Hospital Visits and Evaluation of medical service providers)
expectation.
3. Institute URA Innovations enhancement programmes

Increase staff 1. Develop & Implement staff motivation programmes 100% of staff
motivation motivation
i. Print and deliver branded success cards to all staff children who are candidates
ii. Conduct Annual Staff appreciation days

46
 Strategic Focus for 2014/2015 Expected output
Objective
interventions
2. Implement Corporate reward and recognition programme executed
i. Reward and Recognize best performing staff Staff attrition rate
ii. Implement corporate reward and recognition activities (RRC-CG's award,
maintained at 4%
Departmental Employee of the year, Unsung Heroes and Commissioners' reward fund)
90% staff motivation
level achieved

Enhance staff 1. Develop and Implement standardized staff development programs 100% of staff trained
competences as per training
2. Implement the training planner planner
i. Develop the Corporate Training planner and Conduct trainings as per training planner 3% Training Budget
(Including leadership trainings for managers and supervisors) as a percentage of
total Budget

Improve 1. Develop and implement corporate culture transformation programme 100% of corporate
Corporate culture interventions
Culture i. Institutionalize and embed the approved URA Culture
executed
2. Implement integrity enhancement programme

3. Conduct investigations into issues related to non-compliance fraud and other practices
deemed to be of risk to the organization

4. Engage staff on Corporate Culture

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