Uganda Revenue Authority’s Commissioner Gen. John Rujoki Musinguzi has met with the CEO of Global Voice Group (GVG) James G. Claude to strategize ways of addressing compliance gaps in the telecommunications sector and data-dependent companies.
During the meeting, Claude praised the revenue body for its vital role in tax collection and emphasized the importance of collaboration in tackling non-compliance issues. GVG representative Hamza Immarana also elaborated on how advancements in data technology have significantly improved data and revenue collection processes highlighting the potential for enhanced accuracy and efficiency in compliance monitoring.
Musinguzi, echoed these sentiments, urging for a more proactive approach to data collection and sharing. “Whatever we have been doing optimally, let us increase the energy. As URA, we need to reach a point where we no longer solely rely on tech companies’ data but can independently verify and compare it with our own,” he remarked.
The collaborative effort between URA and GVG since 2020/2021 is seen as a significant step towards enhancing the integrity of data practices within Uganda’s telecommunications industry and ensuring that all companies adhere to regulatory and revenue compliance standards.
In just one area, tax collection estimates show that the government’s decision to implement the digital system led to the recovery of tens of millions of dollars from the operators in under-declared levies and taxes. For example, in the FY 2019/2020, URA relied on GVG technology to collect over $5 million in gaming taxes. Despite some major players exiting the ecosystem, based on the data from the system it can be attested that URA now collects approximately $24 million in gaming taxes.
The GVG technology has also significantly improved the accuracy and reliability of tax assessments. For example, Local and Excise Duty (LED) taxes from the telecom sector have reached UGX1.5 trillion (approx. USD$380 million) recently against UGX800 million (approx. USD$200 million) three years ago.
