Agent banking is becoming more significant in tax collection, according to the Uganda Revenue Authority (URA). The URA finance supervisor, Mr. Ainamaani Tearemwe, shared this information during a meeting of Housing Finance Bank agent banking agents. He pointed out that URA has seen substantial growth in revenue collections through agent banking, with Housing Finance Bank alone contributing nearly Shs9 billion in monthly collections.
Mr. Tearemwe attributed this success to the accessibility and flexibility offered by agent banking. However, he acknowledged that some taxpayers have expressed concerns about the costs associated with tax transactions.
“We collect Shs8.8 billion in the form of tax and non-tax revenue monthly through Housing Finance Bank’s agent banking system. This money results from an average of 3,500 transactions per month,” stated Mr. Tearemwe.
Over the years, URA has introduced various platforms to facilitate tax payments, including mobile money, online payments, real-time gross settlement electronic fund transfers, and cash payments through bank agent banking.
Agent banking has significantly expanded access to banking services, with the number of agents surpassing 26,800, shared among 22 banks, according to the Bank of Uganda.
The Bank of Uganda recently highlighted the rapid growth of agent banking since 2017, contributing to increased access to formal financial services across Uganda. In 2017, there were only 139 agent banking outlets, but this number surged to 11,000 in 2019, further increasing to 23,000 in 2021 and surpassing 26,858 agents by June 2022.
“As of June, there were 22 financial institutions on the agent banking shared platform. The total number of agents for institutions licensed to provide agent banking services was 26,858,” reported the Bank of Uganda. This growth not only supports financial inclusion but also positively impacts key performance indicators.
[Table: Key Points]
|Agent Banking’s Role in Tax Collection
|Agent banking is gaining importance in tax collection, according to Uganda Revenue Authority (URA).
|Revenue Growth through Agent Banking
|URA reports significant growth in revenue collections, with Housing Finance Bank contributing nearly Shs9 billion monthly.
|Accessibility and Flexibility
|Agent banking’s success is attributed to its accessibility and flexibility, despite some taxpayer concerns about transaction costs.
|Various Payment Platforms
|URA has introduced various platforms for tax payments, including mobile money, online payments, and bank agent banking.
|Expansion of Agent Banking
|The number of agent banking agents has grown to over 26,800, shared among 22 banks, as per Bank of Uganda data.
|Rapid Growth Since 2017
|Agent banking has experienced exponential growth since 2017, with 26,858 agents by June 2022, per the Bank of Uganda.
|Support for Financial Inclusion
|The growth of agent banking contributes to improved access to formal financial services and key performance indicators.