URA Intensifies Push to Tax Small Businesses with Digital Integration Drive
The Uganda Revenue Authority (URA) has launched a renewed push to integrate small and informal businesses into the national tax system, as it works to boost domestic revenue and reduce dependence on foreign aid.
At the center of this campaign is the Electronic Fiscal Receipting and Invoicing System (EFRIS), a digital platform that captures real-time data on business transactions. This system aims to improve transparency, close revenue leakages, and strengthen compliance across Uganda’s rapidly growing small business sector.
URA Commissioner General John Musinguzi, in his weekly update, emphasized that even small-scale and informal enterprises must comply with tax regulations. “EFRIS gives us real-time access to transaction data, helping widen the tax net and ensure fairness,” he stated.
The system requires businesses to issue digital receipts and invoices, which are instantly transmitted to URA’s monitoring systems. This curbs underreporting and makes it easier for the authority to verify income and tax liabilities.
Since 2021, URA has partnered with Global Voices Group (GVG), a leading digital solutions provider, to enhance its detection of tax evasion. GVG’s technology allows independent verification of taxpayer information, minimizing reliance on self-reporting — historically a major weakness in tax enforcement.
Musinguzi clarified that all newly registered businesses — from cleaning services to professional trades — must obtain Taxpayer Identification Numbers (TINs), register for VAT if eligible, and file monthly PAYE for their employees.
This digital integration is a critical step toward meeting URA’s 2024/2025 revenue target of over UGX 29 trillion. Officials say that the SME sector, while being one of the fastest-growing segments, has long been under-taxed.
“With this system, small businesses become significant contributors to Uganda’s revenue,” said a senior URA official. “It’s about creating a level playing field and making sure all sectors pay their fair share.”
Though some business owners have expressed concerns over the cost and complexity of compliance, URA insists the long-term benefits — like better access to loans, improved financial records, and formal market participation — outweigh initial challenges.
To support this transition, URA is also rolling out nationwide education prograhttps://ura.go.ug/en/tax-education/ms to help entrepreneurs understand and adopt the new systems.
This initiative is part of URA’s broader strategy to strengthen local resource mobilization and reduce Uganda’s reliance on external financing by improving compliance and efficiency in tax collection.
