In a decisive move toward modernizing its fiscal infrastructure, the Uganda Revenue Authority (URA) has announced the integration of Artificial Intelligence (AI) across its tax administration systems. This strategic adoption is part of a broader institutional transformation aimed at curbing revenue leakages, enhancing operational efficiency, and bolstering Uganda’s domestic revenue mobilization efforts.
Speaking during the launch of an AI and robotics innovation lab at ISBAT University last Thursday, URA Commissioner General John Rujoki Musinguzi emphasized the pivotal role that emerging technologies will play in redefining the future of taxation.
“We are no longer in the ideation phase when it comes to technology. We are actively deploying it,” Musinguzi remarked. “Artificial Intelligence has the unmatched capacity to analyze vast datasets and detect complex patterns that would be practically impossible for human analysts to discern within any reasonable timeframe. What might take a century to evaluate manually, AI can interpret in seconds.”
Uganda currently grapples with a tax-to-GDP ratio of approximately 13%, which falls significantly short of the Sub-Saharan Africa average of 18%, and starkly contrasts with the 40% benchmarks seen in advanced economies such as Germany and France. According to Musinguzi, leveraging AI is no longer an option but a necessity if Uganda is to close this tax productivity gap and improve fiscal sustainability.
“We cannot continue to address contemporary challenges using obsolete tools. Artificial Intelligence equips us with the analytical vision to uncover previously invisible inefficiencies and fraud,” he added.
URA has already begun deploying AI in critical areas, including taxpayer registration and Tax Identification Number (TIN) processing. Plans are currently underway to expand AI integration to over 90% of the Authority’s core operations, signaling a fundamental shift toward a data-driven, technology-enabled tax regime.
While the URA’s digital transformation journey garners praise, stakeholders within the academic sector have raised concerns about the financial barriers to accessing such technologies. ISBAT University Chairperson, Mr. Varghese Mundamattam, highlighted the punitive taxation on imported educational technologies—tools vital for hands-on learning in AI and robotics.
“When we attempted to import specialized engineering tools for our students, the taxes were prohibitively high,” he explained. “It’s akin to planting seeds on barren ground—the ecosystem must support innovation and growth.”
Over 90% of digital devices used in Uganda are imported, and many attract combined taxes—including Value Added Tax (VAT), import duties, and infrastructure levies—that can exceed 30% of the product’s value. These cumulative costs create a disincentive for academic institutions to invest in cutting-edge educational technologies.
Mr. Mundamattam appealed to the government to introduce tax incentives for institutions investing in frontier technologies, a proposition that Commissioner General Musinguzi acknowledged, indicating that stakeholder engagement on the matter would be pursued further.
Former Finance Minister and ISBAT University Chancellor Jachan Omach added a sense of urgency to the discussion, warning that inaction could result in Uganda lagging behind in the global AI revolution.
“Artificial Intelligence is not a distant concept—it is our present reality,” Omach stated. “If Uganda does not respond swiftly, we risk participating in a race that others have already finished.”
As URA continues to lay the groundwork for a digitally empowered revenue ecosystem, the conversation now shifts to how policy, academia, and industry can collaborate to ensure that the integration of AI yields not just administrative efficiency, but also inclusive and sustainable development
