Museveni Pushes for Higher Tax Collection, Sets 20% Target for URA

Updated By Faith Barbara N Ruhinda at 1208 EAT on Monday 13 October 2025

President Yoweri Museveni has called on the Uganda Revenue Authority (URA) to increase the country’s tax-to-GDP ratio from the current 14 percent to at least 20 percent, emphasizing the need to reduce reliance on external borrowing and donor funding.

Speaking at Uganda’s 63rd Independence Day celebrations held on Thursday at the Kololo Ceremonial Grounds in Kampala, President Yoweri Museveni emphasized the need for stronger domestic revenue performance, stating that improved tax collection would enable the government to finance more of its development programmes without relying on external support.

“If URA collected at least 20%, we would raise about Shs 47 trillion annually,” Museveni said. “That would ease our dependence on borrowing and accelerate development.”

The President also expressed optimism about Uganda’s economic future, noting that the commencement of oil production next year would be a turning point for the country. He described the delayed extraction as a blessing “shielded by divine providence” until the nation was ready to harness it responsibly.

President Yoweri Museveni recalled Uganda’s early attempts to explore petroleum during the colonial era, noting that the British, who governed the country for 68 years between 1920 and 1956, failed to locate commercially viable oil reserves.

“The British were here for 68 years, from 1920 to 1956. They tried to find petroleum in Uganda but failed. They even concluded it had evaporated due to volcanic activity,” Museveni said.

He contrasted this with the success of his government, crediting divine providence for Uganda’s oil discovery.

“When the NRM came, we discovered petroleum around Lake Albert. God favoured us—with special emphasis,” he added.

Museveni outlined the government’s key priorities for utilizing oil revenues, highlighting defence and security, infrastructure, electricity expansion, education, healthcare, safe water access, irrigation, and railway development. He also emphasized investment in science, technology, and innovation, citing projects such as Kiira Motors Corporation and Dei Biopharma as central to Uganda’s long-term economic transformation.

President Yoweri Museveni said part of the anticipated oil revenues will be allocated to improving the welfare of scientists, judicial officers, and security personnel. He emphasized that with disciplined budgeting, Uganda could sustain an annual economic growth rate of around 7 percent.

While acknowledging ongoing challenges such as a rapidly growing population and rising public debt, Museveni highlighted what he described as significant progress achieved under the National Resistance Movement (NRM) government, particularly in the areas of health, education, and social welfare.

“Uganda’s population has grown from 14 million in 1986 to 46 million today,” he said. “Infant mortality has dropped from 119 to 28 deaths per 1,000 live births, life expectancy has increased from 43 to 68 years, and literacy has improved from 43 percent to 80 percent.”

According to reporting by The Observer, President Museveni also commended Ugandan scientists for their innovations in automotive technology, pharmaceuticals, and vaccine development, noting that their achievements reflect the fruits of strategic investment and disciplined national budgeting.

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