URA Gives Tax Defaulters Final 30-Day Grace Period

By Mulengera Reporters 

The Uganda Revenue Authority (URA) has given taxpayers a final 30-day window to clear outstanding tax arrears, file pending returns and benefit from a waiver on penalties and interest before the June 30 deadline.

According to a report published in the New Vision on June 4, 2026, URA commissioner general John Rujoki Musinguzi said the tax body remained confident of meeting its sh36.7 trillion revenue target for the 2025/26 financial year, provided taxpayers complied with their obligations in time.

Musinguzi noted that tax compliance was a shared responsibility and that timely payment of taxes enabled government to finance services that support Uganda’s economic growth.

He commended compliant taxpayers for sustaining revenue collection despite prevailing economic challenges and explained that URA was increasingly relying on technology and improved service delivery to simplify compliance.

According to him, the authority’s digital strategy is intended to enhance efficiency, provide faster services and reduce queues and administrative backlogs, making it easier for taxpayers to meet their obligations.

Musinguzi also urged taxpayers to file all outstanding returns before the June 30 deadline, even where they are unable to immediately settle their full tax liabilities. He explained that timely filing helps reduce penalties and demonstrates good faith, factors that URA considers when reviewing requests for payment arrangements.

He warned that delays in filing and payment only lead to additional penalties and compliance challenges.

The URA boss further revealed that the authority is currently offering a waiver on penalties and interest for taxpayers who voluntarily disclose and settle their principal tax liabilities before June 30.

The waiver, he said, covers outstanding obligations such as Value Added Tax (VAT), Pay As You Earn (PAYE) and income tax, provided the principal tax amount is paid in full by the deadline.

URA warned that taxpayers who fail to take advantage of the relief would be liable for the full penalties and interest after June 30.

Musinguzi also cautioned taxpayers against waiting until the last minute to make payments, noting that payment systems often become congested towards the end of the financial year and that banking processes may cause delays.

He advised taxpayers to review their tax positions, file outstanding returns, settle their obligations and claim the available waiver before the deadline in order to begin the new financial year in full compliance.

As part of wider efforts to improve voluntary compliance, URA said it continues to prioritise taxpayer education, mediation and stakeholder engagement. The authority is also intensifying surveillance at porous border points to curb smuggling and protect domestic revenue.

This version clearly shows that the story was adapted from the New Vision report of June 4, 2026, and all direct quotations have been converted into indirect speech. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).