Uganda’s Oil-related Income Rises as Country Transitions to Oil Producer

Uganda’s oil sector activities are ramping up as the country transitions to becoming an oil producer next year. According to a recent report by the Petroleum Fund, the taxation of oil and associated goods significantly boosted revenue for the financial year ending June 30, 2023, with the country generating an additional $11.66 million from oil tax. The report also revealed that total oil revenues (both tax and non-tax) reached $33.42 million, increasing by 54% over the previous year’s revenue. With $31.46 million, tax revenues constituted 94% of the total, while non-tax revenues accounted for the remaining 6%. For tax revenues, the increase is attributed to heightened activity in the oil sector, including corporation and withholding taxes. For non-tax revenues, the increase stems from surface rentals and training fees paid by Uganda National Oil Company and DGR Energy Turaco.

SOURCE: MONITOR