Government has set a higher revenue collection target in the 2018/2019 financial year, according to the budget framework paper that's before parliament.
The state minister for Finance, David Bahati, tabled the budget framework before parliament last week. According to the budget framework, government estimates to collect Shs 15.547 trillion in the 2018/2019 financial year from domestic sources. Shs 15.1 trillion is expected to come from tax revenue while Shs 418 billion is expected from non-tax revenue.
The domestic revenue target is an increase from Shs 15.062 trillion in the current 2017/2018 financial year budget. Out of this, Shs 14.6 trillion is tax revenue while Shs 376 billion is non-tax revenue.
"Government will propose modest adjustments to the current tax regime to ensure revenue productivity of the tax system, close loopholes in the tax laws, index specific tax rates for inflation, enhance tax administration efficiency and facilitate tax payer compliance," reads part of the budget framework paper.
