Tax Body In Trouble: Multibillion Car Repair & Pension Scandals Rock URA

By Our Reporter

Parliament has erupted in outrage after revelations that the Uganda Revenue Authority (URA) splurged a staggering UGX6.4 billion repairing just 61 vehicles in three years — averaging UGX77 million per car, with one single vehicle gobbling up UGX106 million in repairs.

The bombshell figures were tabled by Busiro East MP Medard Sseggona on September 11, 2025, as he presented the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) report on URA’s corporate services audit.

“The Auditor General reviewed 61 vehicles with the highest repair expenditures between 2021/22 and 2023/24, finding an average repair cost of UGX77 million per vehicle. The highest single repair cost reached UGX106 million — more than the market value of some brand-new cars,” Sseggona revealed to a stunned House.

MPs Question URA’s Priorities As Fleet Remains “Ageing & Uneconomical”

URA management admitted that most of the vehicles were 8–12 years old, with 12 undergoing complete engine overhauls. The tax body confirmed it had budgeted UGX6.7 billion this financial year to procure 25 new vehicles, expected in December 2025, with 38 old vehicles due for disposal.

But MPs were unconvinced — slamming URA for slow procurement and citing similar delays in FY2021/22 when 132 vehicles took “forever” to arrive, crippling operations.

Parliament unanimously adopted COSASE’s recommendations urging the Commissioner General to urgently procure and deliver new vehicles and dispose of obsolete ones to stop hemorrhaging billions on repairs.

URA Caught In “Double Dipping” On Staff Pensions

The plenary didn’t stop at vehicle repairs. Lawmakers also turned the heat on URA over what the Auditor General branded “double contributions” to staff retirement benefits.

In FY2023/24 alone, URA spent UGX47 billion on pensions — UGX24.6 billion to the National Social Security Fund (NSSF) and UGX22.4 billion to its in-house retirement scheme.

Auditors warned that this arrangement distorts the budget, but URA staunchly defended it, saying the in-house scheme is necessary to stop staff from fleeing to better-paying agencies.

“Scrapping the scheme could trigger mass attrition and cripple revenue mobilization,” URA warned.

Sseggona advised government not to abruptly terminate the scheme, noting that similar arrangements exist at UBOS, Bank of Uganda, NWSC, and UEGCL.

Parliament has now directed the Uganda Retirement Benefits Regulatory Authority (URBRA) to harmonize retirement schemes across all agencies and cap contributions to prevent what MPs called “pension excesses.”